MASTER 

NEGATIVE 

NO.  94-82090 


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Author: 


Day,  Dwight  Huntington 


Title: 


Mission  accounting  for 
use  in  the  missions  of. 

Place: 

New  York 

Date: 

[1915] 


MASTER   NEGATIVE   * 


COLUMBIA  UNIVERSITY  LIBRARIES 
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Day,  Dwight  Uiuitington,  1876- 

Alission  aooounting  for  use  in  the  missions  of 
the  Board  of  foreign  misBions  of  the  Presbyter- 
ian ohuroh  in  the  U«S.A*y  by  Dwignt  H*  Day».* 
New  York  £19153 

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laSSION  ACCOUN^^ING 


BY  L,H.   DAY 


Columbia  ©nitiersitp 

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School  of  Business 


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Mission 
Accounting 

For  use  in  the  Missions  of 
the  Board  of  Foreign  Mis- 
sions of  the  Presbyterian 
Church   in  the  U.  S.  A. 


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Mission  Accounting 

FOR  USE  IN  THE 

MISSIONS 

OF 

THE  BOARD  OF  FOREIGN  MISSIONS 

OF  THE 

PRESBYTERIAN  CHURCH 
IN  THE  U.  S.  A. 


BY 


DWIGHT  H.   DAY,  Treasurer 


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156   FIFTH   AVENUE 
NEW    YORK     CITY 


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INTRODUCTORY 

In  this  booklet  the  principles  of  all  sound  bookkeeping 
and  accounting  have  been  adapted  to  the  system  employed 
by  the  Foreign  Board  of  the  Presbyterian  Church,  U.  S.  A., 
in  the  conduct  of  its  work.  The  term  "Appropriation", 
for  instance,  has  an  arbitrary  and  a  technical  significance, 
and  the  methods  which  long  experience  has  shown  to  be 
the  best  for  this  particular  work  are  herein  illustrated. 

It  has  been  possible  to  omit  a  great  deal  which  would 
need  to  be  included  in  any  treatise  on  mercantile  account- 
ing such  as  a  "Goods  Account",  "Profit  and  Loss  Account", 
and  even  a  "Balance  Sheet". 

The  attempt  has  been  made  to  render  assistance  to 
beginners  in  this  department  of  the  work  by  setting  forth 
its  technicalities  simply  and  logically  and  it  will  be  neces- 
sary to  master  each  item  as  it  comes  if  the  succeeding  steps 
are  to  be  understood  and  the  study  made  easy. 

DWIGHT  H.  DAY,  Treasurer 

THE  BOARD  OF  FOREIGN   MISSIONS  OF  THE 
PRESBYTERIAN  CHURCH  IN  THE  U.  S.  A. 

156  FIFTH  AVENUE,  NEW  YORK  CITY 

January  1,  1915. 


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♦' 


II 


CHAPTER  I. 

FUNDAMENTAL  PRINCIPLES 

Bookkeeping,  or  Accounting,  is  the  art  of  recording 
financial  (or  mercantile)  transactions  in  a  systematic  man- 
ner so  that  accurate  results  may  be  readily  obtained. 

The  Mission  Treasurer,  from  his  books,  must  be  able 
to  answer  the  following  questions  at  any  time : 

(1)  What  part  of  any  Appropriation  for  this  field  has 
already  been  expended,  and  what  amount  is  still  available? 

(2)  What  amounts  do  I,  as  Treasurer,  owe,  and  what 
amounts,  if  any,  are  owed  to  me? 

(3)  What  funds  have  I,  as  Treasurer,  received,  from 
what  sources  and  for  what  have  these  funds  been  used? 

(4)  What  amounts  do  I  have  on  hand  of  the  follow- 
ing:  Cash  in  cash-box  and  at  Bank?     Bills  of 

Exchange  ? 

(5)  What  Certificates  of  Credit  have  I  sold? 

(6)  What  New  York  Money  Orders  have  I  paid? 

ACCOUNTS— DEBTOR  AND  CREDITOR 

All  the  Accounts  needed  for  showing  the  results 
required  are  kept  in  a  book  called  a  Ledger. 

An  Account  in  the  Ledger  is  kept  in  such  a  way  as  to 
show  on  one  side  the  value  of  what  is  received  and  on  the 
opposite  side,  the  value  of  what  is  given.    In  this  way,  one 


Note:  The  answers  to  the  above  questions  are  not  nearly  so  comprehensive  as  those 
required  in   Mercantile  Accounting,   y^hich  are  the  following: 

(1)  What  do  I  owe  and  what  is  owed  to  me? 

(2)  What  profit  or  loss  have  I  made  for  a  given  period? 

(3)  What  is  my  business  capital,  and  of  what  does  it  consist? 

8 


1 


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side  being  "set  off"  or  "balanced"  against  the  other,  an 
account  readily  shows  at  any  time  the  difference  between 
what  has  been  received  and  what  has  been  given. 

MEANING  OF  THE  TERMS  DEBTOR  AND  CREDITOR 
The  left-hand  side  of  an  account  is  always  the  Debtor 

side ;  the  right-hand  side  is  the  Creditor  side. 

Items  on  the  Dr.  side  are  preceded  by  the  word  "To*', 

the  Account  having  received  from  some  source  is 

Debtor  To  that  source.  ^^ 

Items  on  the  Cr.  side  are  preceded  by  the  word    By  , 

the  Account  having  given  up,  or  paid  out,  is  credited 

with  the  amount  by  the  person  or  Account  to  which  it  was 
paid. 

Example:  A  Field  Treasurer  receives  $1,000  in  Bills 
of  Exchange  on  April  25th,  1914,  from  the  General  Treas- 
urer in  New  York.  This  amount,  $1,000,  is  entered  on 
the  Dr.  side  of  Bills  of  Exchange  Account.  The  Account 
is  Debtor,  not  in  the  sense  that  it  owes,  but  because  of  its 
having  received.  It  may  be  receiving  what  is  due  it  (the 
Board  having  made  an  Appropriation  and  the  Bills  sent 
out  to  furnish  the  funds),  but  it  is  still  debited.  It  is 
debited  "To  General  Treasurer'',  since  he   (his  Account) 

gave  out  the  Bills. 

The  name  Bills  of  Exchange  at  the  head  of  an  Account 
signifies  that  all  transactions  with  reference  to  the  receipt 
and  giving  out  of  Bills  of  Exchange  are  here  recorded. 
Dr.  Bills  of  Exchange  Account ^^- 


1914 
April 


25 


To  General  Treasurer 
(Nos.  1  &  2  @  $500) 


$1000 


Similarly  the  General  Treasurer  Account  must  be 
credited  with  the  item,  and  entered  ''By  Bills  of  Exchange 
Account",  since  the  latter  account  was  the  one  to  receive 
from  the  General  Treasurer. 


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Dr. 


General  Treasurer  Account 


Cr. 


1914 
April 


25 


By  Bills  of  Exchange 
(Nos.  1  &  2  @  $500) 


$1000 


The  entries  made  above  illustrate  a  cardinal: 
Rule  I:    Enter  on  the  Debit  side  of  an  account  what  it 

receives;  enter  on  the  Credit  side  what  it  gives  out. 

To  illustrate  this  again,  let  us  go  further  with  the  same 
item  and  suppose  that  one  of  the  $500  Bills  of  Exchange 
is  sold  by  the  Field  Treasurer  and  that  full  $500  cash  is 
realized  for  it. 

Since  Bills  of  Exchange  Account  gives  out,  or  releases, 
a  $500  Bill,  that  Account  must  be  credited  (according  to 
the  rule)  with  $500  and  since  Cash  Account  is  benefited, 
the  Bills  of  Exchange  Account  is  credited  "By  Cash  Ac- 
count— $500",  as  follows: 


Dr. 


Bills  of  Exchange  Account 


Cr. 


1914 
April 


25 


To  General  Treasurer 
(Nos.  1  &  2  @  $500) 


$1000 


00 


1914 
April 


26 


By  Cash 

(B/E  No.  1  $500) 


$500 


00 


Similarly,  since  Cash  Account  receives  $500  cash  (from 
the  sale  of  the  Bill),  Cash  Account  must  be  debited  "To 

Bills  of  Exchange  Account   (B/E  No.  1  @  $500) 

$500"  as  follows : 


Dr. 


Cash  Account 


Cr. 


1914 
April 


26 


To  Bills  of  Ex.   A/C 
(No.  1  @  $500) 


$500 


00 


Suppose,  now,  the  Field  Treasurer  pays  out  $200  cash, 
for  labor  on  Residence  No.  4,  which  is  being  erected  on  the 


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compound.     Since  Cash  Account  pays  out  the  $200,  that 

Account  must  be  credited  "By  Residence  No.  4 $200", 

as  follows : 


Dr. 


Cash  Account 


Cr. 


1914 
April 


26 


To  Bills  of  Ex.   A/C 
(No.  1  @  $600) 


$500 


00 


1914 
April 


27 


By  Res.  No.  4  (labor) 


$200 


00 


But  Residence  No.  4  has  received  the  $200.  That  is, 
the  building  has  received  the  benefit  of  the  labor,  for  which 
$200  was  paid.  Therefore,  (according  to  the  rule)  Resi- 
dence No.  4  Account  must  be  debited  with  the  item;  and 
since  cash  was  paid,  it  is  debtor  "To  Cash  Account"  as 
follows : 


Dr. 


Residence  No.  4  Account 


Cr. 


1914 
April 


27 


To  Cash  A/C  (labor) 


$200 


00 


All  the  entries  made  prove  the  following: 
Rule  II:     Every  debit  entry  must  have  a  corresponding 
credit  entry  or  entries,  and  every  credit  entry  must 
have  a  corresponding  debit  entry  or  entries. 

DOUBLE  ENTRY 

There  can  be  no  giver  without  a  receiver.  Therefore, 
every  transaction  affects  two  Accounts,  one  of  which  is 
supposed  to  be  the  giver,  the  other  the  receiver.  The  giv- 
ing Account  has  the  item  entered  as  a  credit ;  the  receivmg 
Account  has  the  item  entered  as  a  debit.  And  each  Ac- 
count must  contain  the  name  of  the  other  Account  in 
the  entry.  Confirm  this  by  examining  again  the  illustra- 
tions thus  far  given. 

6 


i 


All  Accounts  are  kept  in  a  Ledger,  and  every  transac- 
tion affects  two  Accounts  therein.  This  system  of  book- 
keeping is  called  Double  Entry. 

To  further  emphasize  this  Rule :  If  an  entry  is  made 
on  the  Cr.  side  of  an  Account  in  the  Ledger  there  must 
always  be  found  a  debit  entry  or  entries  totaling  the  same 
amount  in  another  Account  or  Accounts,  and  vice  versa. 
One  class  of  Accounts  is  a  check  upon  the  other;  one  Ac- 
count is  the  giver  (Creditor);  another  is  the  receiver 
(Debtor).  Two  Accounts  (at  least)  are  affected  by  every 
transaction,  and  there  is  no  exception. 

The  two  sides  of  the  Ledger,  therefore,  must  always 
agree.  That  is,  the  total  of  all  the  debits  in  the  Ledger 
must  equal  the  total  of  all  the  credits. 

Example  of  one  credit  entry  and  two  debit  entries 
which  correspond.  Suppose  a  Field  Treasurer  pays  out 
$200  in  cash,  $100  of  which  pays  for  lumber  for  Residence 
No.  4,  and  $100  for  lumber  for  Residence  No.  5.  Three 
Accounts  would  be  needed  as  follows : 


Dr. 


Cash  Account 


Cr. 


1914 
April 

28 

By  Res.  No.  4  and 
Res.   No.   5 


Dr. 


Residence  No.  U  Account 


$200 


Cr. 


00 


1914 
April 


28 


To    Cash    (lumber) 


$100 


00 


Dr. 


Residence  No.  5  Account 


Cr. 


1914 
April 


28 


To    Cash    (lumber) 


$100 


00 


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The  above  transaction  required  entries  to  be  made  in 
three  Accounts,  one,  a  Cr.  entry  of  $200,  and  two  Dr.  entries 
of  $100  each,  thus  equaling  in  total. 

Likewise  there  may  be  one  Dr.  entry  and  two  corre- 
sponding Cr.  entries. 

Sometimes  one  Dr.  entry  will  have  a  whole  series  of 
Cr.  entries  to  correspond  with  it,  and  vice  versa. 

Note  again,  in  the  above  the  use  of  the  words  "By" 
and  "To"  and  the  naming  in  each  Account  of  the  corre- 
sponding Account  or  Accounts. 


8 


( 


CHAPTER  II. 

SUGGESTIONS  AND  EXPLANATIONS 
The  Memorandum  Book 

The  need  for  making  bookkeeping  entries  arises  out  of 
the  daily  operations  of  the  Treasurer's  office.  Many  items 
are  handled  physically,  by  the  Treasurer  himself,  or  by 
some  one  acting  for  him.  Others  come  to  the  Treasurer's 
notice  through  the  mails,  in  official  letters,  statements,  or 
notifications.  In  all  cases  the  Treasurer  should  act  in  ac- 
cordance with  the  following  well-advised : 

Rule  III:     Make  an  entry  as  soon  as  a  transaction  takes 
place. 

For  those  transactions  which  the  Treasurer  himself 
handles,  some  entry  or  notation  should  invariably  be  made 
at  the  time.  With  regard  to  the  transactions  reported 
through  the  mails,  these  should  be  entered  in  the  books 
without  delay,  if  for  no  other  reason  than  that  dictated 
by  "enlightened  self-interest".  The  Treasurer  will  only 
thus  forestall  annoyance  and  possible  trouble. 

''Some  entry  or  notation''— It  will  not  always  be  pos- 
sible to  enter  a  transaction  in  the  proper  place  in  the  books 
**at  the  time"  the  transaction  takes  place.  Therefore  the 
Treasurer  should  keep  a  Waste  Book,  or  Memorandum 
Book  in  which  to  record  these  transactions  initially.  It 
will  be  an  additional  safeguard,  especially  to  beginners 
where  all  transactions,  including  those  reported  in  the 
mails,  to  be  noted  down  in  the  Memo.  Book  first 

9 


And  note  the  following: 

Rule  IV:  Always  add  enough  explanation  to  each  entry, 
to  enable  anyone  to  understand  it.  Sometimes  it  may 
be  necessary  to  write  details  or  explanations  on  a  sepa- 
rate sheet  of  paper  numbered  for  reference. 

EXPLANATION  OF  TERMS 

The  term  Appropriation  signifies  that  the  Board,  by 
formal  action,  has  granted  a  certain  sum  of  money  to  a 
particular  Mission  or  person,  to  be  expended  upon  a  speci- 
fied work  or  object.  It  immediately  establishes  a  credit 
to  the  amount  of  the  sum  named  for  the  work  or  object. 

Appropriations  are  divided  into  Classes  for  conveni- 
ence, as  follows: 

Class  I  includes  salaries  and  children's  allowances  of 
missionaries  on  the  field. 

Class  II  includes  expenses  paid  by  the  Board,  of  mis- 
sionaries and  children,  going  to  and  from  fur- 
loughs, also  salaries  of  missionaries  not  on  the 
field  and  children's  allowances  paid  in  the  United 
States. 

Class  III  includes  the  appropriation  set  aside  for  all 
expenses,  including  the  proportion  of  salary  paid 
for  the  balance  of  the  first  year,  of  new  mission- 
aries sent  to  the  field. 

Class  IV  covers  all  evangelistic  work,  itineration,  etc. 

Class  V  covers  all  educational  work  conducted  on  the 
field. 

Class  VI  covers  all  medical  work,  hospitals,  dispen- 
saries, etc. 

Class  VII  covers  rents,  repairs  on  property  in  the  mis- 
sions, etc. 

10 


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Class  VIII  covers  all  appropriations  for  new  property, 
buildings,  etc. 

Class  IX  covers  Station  and  Mission  expenses   (Mis- 
sion meeting  expenses,  etc.). 

Class  X  covers  Mission  Presses. 

The  Board  assumes  the  obligation,  on  behalf  of  the 
whole  Church,  to  furnish  the  money  which  it  has  "appro- 
priated". It  therefore  "charges"  itself  with  the  amount; 
it  is  a  debit  against  the  Board.  However,  the  Board,  as  a 
whole,  delegates  its  functions  to  officers  and  all  Accounts 
of  the  Board  are  assumed  by  the  General  Treasurer.  This 
officer  then  is  "charged"  with  the  official  responsibility  of 
furnishing  the  money  which  the  Board  has  "appropriated" 
to  any  Mission  or  person.  An  "appropriation  is  a  debit  in 
the  General  Treasurer  Account  on  the  Field  Treasurer's 
books.  It  stands  as  owed  by  him  to  the  Mission  until  he 
sends  funds  to  discharge  the  obligation.  From  time  to 
time,  as  he  sends  funds,  the  General  Treasurer's  Ac- 
count is  credited  with  the  amounts,  and  when  sufficient 
funds  have  been  sent  to  equal  the  amount  of  the  appropria- 
tion, the  obligation  is  discharged,  the  debit  has  been 
equalled  by  credits,  and  the  Account  balances. 

Illustration:  Suppose  that  at  the  first  of  the  fiscal 
year  the  Board  appropriates  $10,000  for  Class  I  (i.  e.  in 
salaries  for  Missionaries)  for  the  year  to  a  certain  Mis- 
sion. A  formal  notification  to  this  effect  is  sent  to  the 
Field  Treasurer.  He  immediately  enters  the  item  as  a 
debit  in  the  General  Treasurer  Account  as  follows : 


Dr. 


General  Treasurer  Account 


Cr. 


14 
April 


To  Class  I  Approps. 
(Salaries) 


$10,000 


00 


11 


>ii[»i.MSiMiii'*4iiiaiBiiiBiyMiiiiM»iir^^ 


The  General  Treasurer  (name  of  the  Account)  is 
Debtor  (see  Dr.  at  the  top  of  the  left-hand  column)  "To 
Class  I  Appropriations"  (to  which  account  the  money  must 
be  sent,  or  in  which  work  i.  e.  Salaries,  the  money  must 
be  expended).  The  General  Treasurer  owes  the  $10,000 
"To  Salaries",  throughout  the  year. 

But  there  must  be  a  Credit  entry  to  correspond  with 
this  Debit  entry,  in  order  to  comply  with  the  Rule. 

The  Account  named  in  the  above  illustration  is  the  one 
to  be  credited,  i.  e.,  Class  I  Appropriation  Account.  This 
Account  is  credited  "By  General  Treasurer"  (who  officially 
sent  out  the  credit  in  the  form  of  an  appropriation). 

Dr.      Class  I  Appropriation  Account  (Salaries)      Cr. 


1914 
April 


By  General  Treasurer 


110,000 


00 


For  the  Dr.  entry,  there  has  now  been  made  a  corre- 
sponding Cr.  entry. 

Likewise,  for  all  appropriations  made  by  the  Board 
and  notified  to  the  Field  Treasurer  by  the  General  Treas- 
urer. The  General  Treasurer  Account  must  be  debited 
with  the  various  appropriations,  and  each  Class  must  have  a 
separate  account  and  be  credited  with  the  amount  allotted 
to  it. 

BILLS  OF  EXCHANGE* 

These  are  virtually  promises  or  orders,  issued  by  the 
signing  party,  and  causing  money  to  be  paid  to  another 
party  or  his  order  (i.  e.,  to  anyone  to  whom  the  second 
party  orders  the  money  to  be  paid). 

The  General  Treasurer  issues  Bills  of  Exchange  to  the 


•Not  Merchants'   Bills  of  Exchange. 


12 


Field  Treasurer,  as  a  means  of  transferring  funds  which 
have  been  appropriated  by  the  Board  for  work  on  the  field. 
The  Field  Treasurer  exchanges  (sells)  them  to  local  banks 
or  merchants  for  cash,  and  on  the  back  of  the  Bill  orders 
the  money  to  be  paid  to  this  local  bank  or  merchant.  These 
parties,  in  their  turn,  endorse  the  Bill  to  some  other  bank 
or  merchant,  and  this  process  is  repeated  from  one  to  an- 
other until  the  Bill  reaches  New  York  and  is  presented  at 
the  General  Treasurer's  office  in  order  that  he  may  finally 
pay  it  (that  is,  may  redeem  the  promise  he  originally  made 
in  issuing  it) . 

CREDIT  AND  DEBIT  OF  BILLS  OF  EXCHANGE 

As  stated,  the  General  Treasurer's  Account  is  first 
debited  with  an  Appropriation.  He  then  sends  out  Bills 
of  Exchange  to  cover  the  Appropriation.  Since  he  gives 
out  the  Bills ,  his  Account,  i.  e.,  General  Treasurer  Ac- 
count is  credited  with  the  amount  of  the  Bills  received  by 
the  Field  Treasurer.  He  is  given  credit  for  what  he  sends. 
That  is  the  Cr.  entry. 

The  Dr.  entry  is  made  in  the  Bills  of  Exchange  Account 
since  that  Account  is  assumed  to  have  received  the  Bills. 
[See  Rule  I:  Debit  what  is  received.] 

EMERGENCY  BILLS  OF  EXCHANGE  OR  BUILDING 

DRAFTS 

These  are  drawn  on  the  General  Treasurer  by  the  Field 
Treasurer  principally  in  order  to  realize  cash  for  building 
operations,  for  which  the  Board  has  already  made  appro- 
priations. The  General  Treasurer  does  not  send  out  Bills 
of  Exchange  for  this  class  of  work  (Class  VIII)  it  being 
left  to  the  Field  Treasurer  to  sell  Drafts  or  Bills  as  money 
is  needed.  As  soon  as  the  Field  Treasurer  has  made  out 
the  Draft  (Bill  of  Exchange)  he  credits  the  General  Treas- 

13 


4 
!  J 


urer  Account  with  the  amount  which  he  is  drawing,  and 
charges  (debits)  Bills  of  Exchange  Account  (as  though  this 
Account  had  just  received  the  Draft  from  the  General 
Treasurer) .  On  selling  the  Draft  in  the  market,  the  Field 
Treasurer  credits  Bills  of  Exchange  Account  (credit  what 
goes  out)  and  debits  Cash,  since  cash  is  received  in  ex- 
change for  the  Draft  (debit  what  is  received.) 

MONTHLY  STATEMENTS 

At  the  end  of  each  month  the  General  Treasurer  renders 
a  Statement  to  the  Field  Treasurer  showing  all  the  debits 
and  credits  which  have  emerged  in  New  York,  belonging 
to  the  field  in  question. 

For  example:  Supposing  the  General  Treasurer  has 
paid  out  during  the  month  $2.50  for  magazines  to  be  sent 
to  A.  Blake,  one  of  the  missionaries  of  the  Korea  Mission. 
The  Statement  for  that  month  will  show  this  $2.50  as  a 
charge  against  A.  Blake  (since  the  money  has  been  paid 
out  for  him.)  Of  course,  this  item  of  $2.50  is  entered  by 
the  Field  Treasurer  as  a  debit  item  in  the  personal  account 
of  A.  Blake,  called  A.  Blake  Account  Where  is  the  corre- 
sponding credit  entry?    Note  the  following  important 

Direction :  Enter  on  the  Creditor  side  of  the  General 
Treasurer  Account  the  total  debits  or  charges  contained  in 
the  monthly  Statement  received  from  the  General  Treas- 
urer, making  no  deductions  whatever,  even  though  the 
Statement  contains  palpable  errors.  The  corresponding 
Debtor  entries  will  be  made  in  each  Account  chargeable 
with  the  various  items  as  indicated  in  the  Statement.  These, 
added  together,  must  equal  the  Credit  entry  in  the  General 
Treasurer  Account 

Similarly:  Enter  on  the  Debtor  side  of  the  General 
Treasurer  Account,  the  total  credits  reported  in  the  Monthly 
Statement  received  from  the  General  Treasurer,  making  no 

14 


''      < 


V 


deductions  whatever,  even  though  the  Statement  contains 
palpable  errors.  The  corresponding  Credits  must  be  en- 
tered in  the  Accounts  indicated  in  the  Statement.  All 
these  Credits  added  together  must  equal  the  total  Debtor 
entry  in  the  General  Treasurer  Account 

ERRORS  IN  MONTHLY  STATEMENTS 

Suppose  the  General  Treasurer  has  included  in  his 
monthly  Statement  a  charge  against  H.  James  of  $2.50, 
when  the  item  really  belonged  to  H.  Jones  of  another  Mis- 
sion entirely. 

Enter  the  item  as  a  Debit  in  an  account  called  Sus- 
pense Account  On  ascertaining  that  it  belonged  to  a  dif- 
ferent Mission,  enter  a  credit  in  Suspense  Account  and  a 
debit  in  General  Treasurer  Account 

or 

If,  on  receiving  the  Statement,  the  item  was  entered 
against  H.  James  (i.  e.,  entered  as  a  debit  in  his  Account) 
and  he  makes  it  clear  that  it  does  not  belong  to  him,  then 
enter  it  likewise  as  a  credit  in  his  Account  and  as  a  debit 
in  General  Treasurer  Account. 

STATEMENTS  FROM  FIELD  TREASURERS 

The  Field  Treasurer  must  render  Statements  to  the 
General  Treasurer  in  New  York  quarterly. 

These  Statements  must  contain  all  the  debit  and  all 
the  credit  items  with  full  details  that  have  emerged  during 
the  period,  with  reference  to  the  General  Treasurer  Account 

FIELD   MONEY  ORDERS    (CALLED   CERTIFICATES 

OF  CREDIT) 

These  are  instruments  of  exchange,  whereby  funds 
may  be  transferred  from  the  foreign  field  to  payees  in  the 

15 


'  .'ii^M 


!    f 


If 


United  States.  They  are  similar  to  Postal  Orders,  and  have 
the  advantage  of  being  furnished  without  charge  by  Mis- 
sion Treasurers.  The  Missionary  deposits  the  amount  of 
money  which  he  desires  to  send  to  the  United  States  with 
his  Field  Treasurer  and  receives  a  Field  Money  Order,  or 
Certificate  of  Credit  drawn  to  the  payee's  order,  in  exchange. 

Since  Field  Money  Order  Account  has  given  out  an 
Order,  that  Account  must  be  credited  with  the  item  (Rule  I : 
Credit  an  Account  with  what  it  gives  out). 

Since  Cash  was  received  for  the  Order,  Cash  Account 
must  be  debited  with  the  item  (Rule  I :  Debit  an  Account 
with  what  it  receives). 

Note  that  no  entry  is  made  in  the  personal  Account 
of  the  missionary  who  obtains  the  Order. 

Now  it  is  understood  that  the  general  Treasurer  in 
New  York  will  pay  out  cash  to  the  amount  of  the  Order 
when  it  is  properly  presented  for  payment  to  him.  A  credit 
for  this  amount  must  therefore  be  established  in  the  Gen- 
eral Treasurer  Account,  and  this  credit  duly  transferred  to 
the  General  Treasurer  in  New  York.  This  is  done  as  fol- 
lows :  When  the  Statement  is  made  out  by  the  Field  Treas- 
urer at  the  end  of  the  quarter,  he  must  enter  a  Credit  in 
the  General  Treasurer  Account,  not  only  of  this  Certificate 
of  Credit,  but  of  all  of  them  (totaled)  which  he  has  sold 
during  the  month,  and  must  enter  a  Debit  of  the  same 
amount  in  the  Field  Money  Order  Account. 

This  latter  Account  will  be  found  to  balance,  the  Credit 
column  equalling  the  Debit  column. 

The  quarterly  Statement  sent  to  the  General  Treasurer 
will  contain  a  Credit  to  him,  made  up  of  all  the  Certificates 
of  Credit  sold  by  the  Field  Treasurer  during  the  period 
covered  by  the  Statement,  and  since  the  statements  to  the 
General  Treasurer  are  made  from  the  point  of  view  of  the 
New  York  Office,  Credits  on  the  Field  Treasurer's  Books 
appear  on  the  debit  side  of  the  statement  and  vice  versa. 

16 


^ 


NEW  YORK  MONEY  ORDERS 

These  are  instruments  of  exchange  whereby  funds 
may  be  transferred  from  the  United  States  to  payees  within 
the  Missions  on  the  Field.  The  amount  of  money  which  a 
party  in  the  U.  S.  wishes  to  send  to  a  party  in  a  Mission  is 
deposited  with  the  General  Treasurer  in  New  York.  In 
return,  a  New  York  Money  Order  is  given  him,  drawn  to 
the  order  of  the  payee  on  the  field  and  payable  at  the  office 
of  a  Field  Treasurer.  The  remitter  forwards  this  Order  to 
his  correspondent  on  the  field  who  surrenders  it  to  the  Field 
Treasurer  in  his  district,  receiving  cash  for  it. 

The  Field  Treasurer  must  enter  the  item  on  the  Cr. 
side  of  Cash  Account  (since  cash  is  paid  out  Rule  Credit 
what  is  given  out) — and  he  must  enter  it  similarly,  on  the 
Dr.  side  of  the  Account  called  New  York  Money  Orders 
Account,  since  the  Order  is  received.  (Rule  Debit  what  is 
received.) 

These  Orders  are  all  handled  in  this  way  through  the 
quarter  and  the  account  is  balanced  at  the  end  of  the  quar- 
ter by  a  journal  entry  charging  the  General  Treasurer  Ac- 
count and  crediting  New  York  Money  Orders  Account, 
listing  by  numbers  the  Orders  paid  during  the  quarter. 

PERSONAL  ACCOUNTS 

The  Field  Treasurer  will  establish  Accounts  for  each 
Missionary  within  his  district,  heading  each  Account  with 
the  missionary's  name. 

A  credit  entry  will  be  made  each  month  in  each  of 
these  Accounts  of  the  amount  of  salary  due  the  missionary 
for  that  month. 

There  will,  therefore,  be  a  series  of  these  credit  entries 
in  the  Ledger  which  must  be  balanced  by  a  debit  entry  or 
entries.  This  is  effected  by  entering  each  month  the  total 
of  all  these  credit  entries  as  a  debit,  in  the  Account  called 
Class  I  (Salaries)  Appropriation  Account. 

17 


J 


I 


If  the  General  Treasurer  makes  payments  in  the  United 
States  for  a  missionary  on  the  field,  he  will  report  these 
in  his  Monthly  Statement  to  the  Field  Treasurer  as  debits. 
These  must  be  entered  on  the  Dr.  side  of  the  missionary's 
Account  by  the  Field  Treasurer,  on  receipt  of  the  Statement. 

Likewise  any  funds  which  it  is  desired  should  be  trans- 
ferred from  New  York  to  a  missionary  on  the  field  will  be 
listed  in  the  "Monthly  Statement"  of  the  General  Treasurer, 
and  on  receipt  of  this  Statement,  the  Field  Treasurer  will 
enter  the  item  on  the  Or.  side  of  the  missionary's  personal 

Account. 

As  the  missionary  draws  his  salary,  or  any  part  of  it, 
from  time  to  time,  the  Field  Treasurer  will  enter  the 
amount  he  draws  on  the  Dr,  side  of  his  Account— (Rule  I: 
—the  missionary  having  received  the  money  is  debited  with 

the  amount) .  i-  4.1,       • 

The  balance  remaining  on  the  credit  side  of  the  mis- 
sionary's Account,  at  any  time,  will  represent  the  amount 
due  him  at  that  time. 


18 


*T* 


0 


r 


CHAPTER  III. 

JOURNAL,  LEDGER,  CASH  BOOK 

The  data  which  must  be  entered  in  the  Field  Treas- 
urer's Books  is  supposed  to  be  at  hand  in  the  Memorandum 
Book  (previously  described),  and  in  official  communica- 
tions received  through  the  mails. 

A  very  simple  set  of  Books  is  required  for  Field  Treas- 
urer's Accounts.  The  set  consists  of  a  Journal,  Cash  Book 
and  a  Ledger. 

The  Accounts  we  have  thus  far  considered  have  all 
been  in  the  form  of  Ledger  Accounts,  but  in  practice,  no 
items  are  entered  first  in  the  Ledger. 

Every  item  must  be  entered  first  in  either  the  Journal 
or  the  Cash  Book,    These  are  books  of  "original  entry." 

If  the  transaction  does  not  involve  the  receipt,  or  pay- 
ment of  cash,  then  it  is  entered  first  in  the  Journal  and 
afterward  transferred  ("posted")  to  the  Ledger. 

If  the  transaction  involves  the  receipt  or  payment  of 
cash,  it  is  entered  first  in  the  Cash  Book,  and  afterward 
transferred  ("posted")  to  the  Ledger.  In  cases  where 
checks  are  used  they  are  treated  as  cash,  the  amounts 
being  transferred  to  Cash  Book  from  check  stubs. 

The  Ledger  must  contain  every  Account. 

Note :  All  transactions,  including  those  involving  the 
receipt  and  disbursement  of  cash,  may  be  entered  first  in 
the  Journal,  and  some  Accountants  demand  that  this  be 
done. 

In  reality,  the  Cash  Book  is  simply  a  section  of  the 
Journal,  with  a  slightly  different  arrangement,  and  there- 
fore separated  from  it,  but  it  might  be  called,  the  *'Cash 
Transaction's  Division'*  of  the  Journal. 

For  the  present,  we  shall  regard  all  transactions  as 
passing  through  the  Journal  and  will  proceed  as  though 
there  were  no  Cash  Book  and  as  though  none  were  needed. 
This  will  lend  simplicity  to  our  study.    Later,  we  shall  take 

19 


'   ■ 


if    !< 


i\ 


up  a  special  form  of  Cash  Book  which  will  save  the  repeti- 
tion of  certain  entries. 


THE  JOURNAL 

The  Journal  is  one  of  the  accounting  books  of  a  regular 
set,  used  solely  for  preliminary  work  respecting  financial 
transactions. 

When  a  transaction  is  ready  to  be  entered  in  the  reg- 
ular books,  it  is  entered  first  in  the  book  kept  for  that 
special  purpose  called  the  Journal.  The  entry  is  afterwards 
transferred  or  "posted"  (without  many  details)  to  its  proper 
place  in  the  Ledger  Account. 

The  Journal  is  of  service  in  arranging  and  classifying 
the  items  for  the  Ledger  Accounts,  and  it  shows  for  each 
transaction  the  Account  to  be  credited  and  the  Account  to 
be  debited. 

(a)  A  thorough  understanding  of  the  Journal  is  es- 
sential. 

(b)  Its  use  makes  the  meaning  of  Debtor  and  Creditor 
familiar,  and  from  it  one  can  always  reason  out 
the  relation  of  one  Account  to  another. 

(c)  The  Journal  offers  the  first  step  in  Bookkeeping 
by  Double  Entry  and  its  correct  use  is  of  cardinal 
importance. 

The  following  transactions  have  been  gathered  to- 
gether in  a  "Memo.  Book",  from  official  communications 
and  from  actual  operations  conducted  by  the  Field  Treas- 
urer. These  will  be  Journalized,  and  then  will  be  posted 
in  the  Ledger. 

MEMO.  BOOK 
1914 

April    1.     Appropriations  for  Class  I   (Salaries) 

for  1914-15  (as  advised  by  Board  Letter 

20 


' 


•' 


'  / 


on  Annual  Appropriations  dated  March 

1,  1914)    $10,000 

April   S.    "Monthly  Statement"  from  N.  Y.  (for 

February,  1914)  charges 475 

April  4.  Error  in  N.  Y.  "Monthly  Statement" 
(for  Feb.  1914)  charge  against  T.  Jones 
incorrect  as  item  does  not  belong  to  him  65 

April   5.     Sold  Certificate  of  Credit  (No.  987  to 

B.  Ward) 5 

April   7.    Received  Bills  of  Exchange  from  N.  Y,, 

No.  271,  No.  272  and  No.  273  @  $500.        1,500 

April  10.  Sold  B/E  (Bill  of  Exchange)  No.  271. .  500 

April  12.  Notice  No.  864  received  to-day  states 
that  the  Board,  at  its  meeting,  March 
10th,  appropriated  $3,000  for  Residence 
No.  5 8,000 

April  15.  Sold  Building  Draft  No.  56  for  funds  to 

pay  labor  on  Residence  No.  5 500 

Aprill6.    Cashed  N.  Y.  Money  Order  (No.  717 

drawn  to  R.  Brown) 25 

April  17,    Paid  James  Arthur  cash,  on  account  of 

salary  for  month  of  April,  1914 20 

April  20.    Received  from  local   Government  Of- 
ficial, toward  building  Chapel  No.  2. . . .  175 
The  Journal  is  now  used  to  "sort  out"  the  above  trans- 
actions and  arrange  them  for  the  two-fold  entry  in  the 
Ledger. 

The  questions  to  be  asked  in  each  case  are: 

What  Account  receives? 

What  Account  gives? 
and  Rule  I  must  be  applied :  Debit  the  Account  that  Receives, 

Credit  the  Account  that  gives. 
Each  and  every  transaction  affects  two  Accounts,  one  of 

21 


ii 


1914 

April 


April 


them  on  its  Dr.  side,  the  other  on  its  Cr.  side. 

The  Dr.  entry  is  always  made  first  in  the  Journal,  the 
amount  being  placed  in  the  left-hand  column. 

The  Cr.  entry  always  follows,  the  amount  being  placed 
in  the  right-hand  column. 

The  totals  of  the  Dr.  and  Cr.  columns  must  be  equal. 

Note:  That  in  every  transaction,  the  Journal  shows  the 
relation  of  one  Account  to  the  other,  and  gives  the 
names  of  both  Accounts  affected.  One  of  these 
Accounts  in  the  Ledger  will  contain  the  debit 
entry,  the  other  the  credit  entry. 

To  proceed  now  to  Journalize  the  items  in  the  Memo. 
Book: 

Jourv  al 


April 


April 


3 


Gen.  Treas.  A/C  (review  p.  11) Dr. 

To  Class  I  (Salaries)  Approps.,  1914- 
15  A/C   


LKDOBR 
POLIO 


H.  James  A/C Dr. 

(Prem.  Home  Life  Ins.  Co.) 

T.  Jones  A/C Dr. 

(Bill  Montgomery  Ward  &  Co.) 

James  Arthur  A/C Dr. 

(Bill  Montgomery  Ward  &  Co.) 

R.  Brown  A/C Dr. 

(Bill  Jno.  Wanamaker) 

B.  Ward  A/C Dr. 

(Prem.  Pres.  Min.  Fund) 

Chapel  No.  2  A/C Dr. 

(B.  Smith  &  Co.,  Lumber) 

To  General  Treasurer  A/C 

(Statement  from  N.  Y.  Treasurer  for 
month  of  February) 


25 
26 
30 

30 

30 

30 

30 

31 
30 


Dr. 


$10,000 


75 

65 
55 

25 

80 

175 


00 


00 
00 
00 

00 
00 
00 


Cr. 


$10,000 


April 


April 


April 


475 


00 


April 


April 


00 


April 
April 


Journal 


10 


12 


General  Treasurer  A/C Dr. 

(N.  Y.  Statement,  Feb.,  1914) 

To  T.  Jones  A/C 

(Previously  charged  to  him  in  error) 


Cash  A/C  (receives  actual  cash).. Dr. 

To  Certificates  of  Credit  A/C 

(No.  987,  sold  to  B.  Ward)    (Review 
pp.  15-16) 


Bills  of  Exchange  A/C,  Nos.  271,  272, 

273,  @  $500  each Dr. 

To  Gen.  Treas.  A/C   (review  p.  13) 


Cash  A/C  (receives  actual  cash) . .  .Dr. 

To  Bills  of  Exchange  A/C 

(Sold  No.  271  @  $500) 


General  Treasurer  A/C .Dr. 

To  Residence  No.  5  A/C 

(Notice    No.    864,    Board    meeting 
March  10th,  Appropriation) 


15 


16 


17 


20 


Cash  A/C Dr. 

(Receives  cash  from  sale  of  Bldg. 
Draft  No.  56) 

To  Bills  of  Ex.  A/C  (for  Res.  No.  5) 


N.  Y.  Money  Order  A/C Dr. 

(Cashed  No.  717  for  R.  Brown)   (re- 
view p.  17) 

To  Cash  A/C  (actual  cash  paid  out) 


James  Arthur  A/C  (missionary) . .  .Dr. 
To  Cash  A/C  (Cash  Acc^t.  Salary) . . 


Cash  A/C  Dr. 

(Receives    cash    from     Government 
Official) 

♦To  Chapel  No.  2,A/C 

(As  a  credit  available) 


32 
32 


33 
33 


34 
34 

35 
34 

35 
35 


37 

37 
38 

38 

39 

38 

39 
39 


65 


1500 


500 


00 


00 


00 


00 


3000 


500 


25 


00 


00 


00 


20 


175 


$16,265 


00 


00 


65 


00 


00 


1500 


600 


00 


00 


3000 


600 


00 


00 


25 


20 


175 


00  $16,265 


00 


CO 


00 


00 


*See  bottom  of  next  page. 


28 


IMIlHi 


It  will  be  seen  from  this  sample  Journal  that 

(a)  The  total  of  the  Dr,  column  equals  the  total 
of  the  Cr.  column. 

(b)  Every   Dr.   entry  has   a   corresponding  Cr. 
entry. 

(c)  The  name  of  each  Account  affected  is  indi- 
cated. 

Note:  The  Account  that  receives  the  Dr.  item  is  named 
first.  That  Account  is  "Dr.  To** — the  Account 
which  is  named  afterward, — which,  of  course,  is 
the  Account  which  receives  the  Cr.  item. 

The  beginner  should  practice  forming  a  Journal,  first 
by  transferring  the  Memo,  items  given  above  into  a 
"Dummy  Journal" — without  using  the  book,  and  then,  from 
Memoranda  of  other  imaginary  transactions. 

From  the  Journal,  the  next  step  is  to 

THE  LEDGER 

The  Ledger  contains  a  complete  record  of  all  the 
Accounts,  though  without  many  details,  by  way  of 
explanation. 

It  is  only  for  convenience,  accuracy,  and  information 
in  detail  that  transactions  are  entered  first  in  the  Journal 
(or  Cash  Book). 

The  Ledger  could  alone  be  made  sufficient  for  all  the 
data  required  in  the  Accounts,  without  passing  the  trans- 
actions through  any  subsidiary  book,  but  such  practice 
would  be  inexpedient  and  unsafe  as  well  as  cumbersome. 

Still,  it  must  be  remembered,  that  preliminary  books 


Chapel  No.  2  Account  teems  to  have  received  a  gift,  and  it  may  appear  to 
require  to  be  debited  with  the  $176.  Not  so,  however.  The  $175  has  not  yet  been 
put  into  brick  and  stone  for  the  Chapel;  this  amount  stands  available  for  it,  and  is 
its  capital,  or  credit.  When  the  $175  shall  have  been  spent  on  the  Chapel,  then 
the  Chapel  may  be  said  to  have  received  it,  and  then  the  Chapel  No.  i  Account 
must   receive   the   item   as  a  debit — "To   Cash"    (which   has   been   spent   upon   it). 

Such  gifts  are  like  Appropriations.  They  must  be  set  up  as  credits  in  the 
Accounts  to  which  they  belong. 

M 


7 


(such  as  Journal  and  Cash  Book)  are  simply  assistants  to 
the  Ledger. 

HOW  TO  OPEN  THE  LEDGER 

Accounts  are  opened  for  the  various  persons  and  organ- 
izations, with  which  business  is  transacted,  and  for  all  other 
Accounts  indicated  in  the  Journal. 

Each  item  is  transferred  from  the  Journal  to  its  proper 
Account  in  the  Ledger,  and  to  the  same  side  in  the  Account 
(i.  e.,  Dr.  or  Cr.)  in  which  it  appeared  in  the  Journal. 

This  operation  is  called  "posting"  into  the  Ledger. 

When  posting  an  item  in  the  Ledger,  enter,  in  the 
narrow  column  (in  the  Ledger)  provided  for  the  purpose, 
the  number  of  the  page  in  the  Journal  from  which  the  item 
comes ;  likewise  when  an  item  has  been  entered  in  its  place 
in  the  Ledger  Account,  enter  in  the  narrow  column  (in  the 
Journal)  headed  Ledger  Folio,  the  Folio  number  of  the 
Ledger,  on  which  the  entry  appears.  This  process  is  a 
check  upon  your  posting  and  prevents  omissions  and  repe- 
titions. 

TRANSACTION  OF  APRIL  1st,  1914 

Taking  the  first  entry  in  the  Journal,  head  an  Account 
in  the  Ledger  General  Treasurer  Account,  and  enter  on  the 
Dr.  side — "April  1,  To  Class  I  (salaries)  Approps.  1914-15 

(see  page  11) $10,000.     [This  simply  means  that  the 

Board  has  appropriated  $10,000  for  the  year  1914-15,  to 
be  expended  in  salaries  to  the  missionaries  of  that  Mission, 
and  it  is  charged  against  the  General  Treasurer,  since  he 
must  furnish  it.] 


Dr. 

General 

Treasurer  Account 

Cr. 

1914 

•3.2 

•55 

C  0 

April 

1 

To   Class  I  Approps., 
1914-15 

23 

$10,000 

09 

25 


,; 


,/ 


¥ 


The  name  of  the  next  Account  for  the  Ledger  has  al- 
ready been  given  in  the  entry,  i.  e..  Class  I  Appropriations 
Account, 

Dr.  Class  I  Appropriations  Account  Cr. 


1914 
April 

1 

By   Gen.    Treasurer 


23 


$10,000 


00 


That  is  to  say,  the  salary  Account,  which  is  called 
Class  I  Appropriations  has  a  credit  of  $10,000  which  amount 
may  be  expended  in  salaries  throughout  the  year,  in  monthly 
payments,  as  advised  by  the  Board's  official  communication 
dated  March  1,  '14. 

Note:  That  in  the  above  examples  we  have  a  credit  entry 
which  balances,  and  corresponds  to  the  debit  entry, 

SALARIES  PLACED  IN  PERSONAL  ACCOUNTS 
Each  missionary  with  whom  the  Field  Treasurer  deals 
must  have  a  Personal  Account,  headed  by  his  own  name. 
This  personal  Account  will  constantly  be  receiving  debits 
and  credits,  as  money  is  paid  out  to  the  missionary,  or 
received  for  the  missionary.  As  money  or  as  credits  are 
received  for  the  missionary,  and  become  available  as  his 
capital  they  are  entered  as  credits  in  his  account.  The  first 
credit,  and  it  is  a  regular  monthly  credit,  is  the  item  of  his 
salary  for  the  current  month.  As  these  credit  items  are 
entered  in  each  personal  Account,  each  month,  the  total  of 
all  these  salary  credits  must  be  entered  as  a  debit  in  one 
item,  in  CUiss  I  Appropriations  Account,  This  process  is 
illustrated  as  follows,  the  item  being  entered  as  a  total  Dr. 
item  first. 

Dr.  Cla^s  I  Appropriations  Account  Cr. 


1914 
April 


To  Salaries,  Apr.,  '14 


27 


$888 


30 


1914 
April 


By  Gen.   Treasurer 


28 


$10,000 


00 


26 


Hu. 


Since  the  Salaries  or  Class  I  is  now  assumed  to  have 
received  the  credits  (put  into  the  missionaries'  Accounts), 
Class  I  must  be  debited  with  the  total  amount  for  April 
(debit  what  is  received). 

There  are  supposed  to  be  ten  missionaries,  each  to  be 
credited,  every  month,  with  1/12  of  $1,000  (annual  salary) 
or  $83.33  each,  per  month;  10x$83.33=$833.30,  the  debit 
item  as  entered. 

These  credits  must  now  be  made  available  in  the  form 
of  credits,  to  each  of  these  missionaries,  as  follows : 


Dr. 


H,  James  Account 


Cr. 


1914 
April 


By  Class  I  Approps. 
(salary) 


26 


$83 


33 


'  •> 


T.  Jones  Account 


1914 
April 

1 

By  Class  I  Approps. 
(salary) 


26 


$83 


33 


B,  Ward  Account 


1914 
April 

1 

By  Class  I  Approps. 
(salary) 


26 


$83 


83 


James  Arthur  Account 


1914 
April 

1 

By  Class  I  Approps. 
(salary) 


26 


$88 


33 


27 


«■ 


Dr. 


G.  Robinson  Account 


Cr. 


1914 
April 

1 

By  Class  I  Approps. 
(salary) 


26 


183 


A,  Smith  Account 


1914 
April 


By  Class  I  Approps. 
(salary) 


W,  Graham  Account 


1914 
April 

1 

By  Class  I  Approps. 
(salary) 


26 


iS.  Grove  Account 


1914 
April 

1 

By  Class  I  Approps. 
(salary) 


26 


F.  Williams  Account 


1914 
April 


By  Class  I  Approps. 
(salary) 


26 


R,  Brown  Account 


1914 
April 


By  Class  I  Approps. 
(salary) 


26 


33 


183 


88 


<ii 


$83 


33 


$83 


38 


$83 


88 


$88 


38 


Note  :  That  the  sum  total  of  all  these  credit  entries  equals 
the  debit  entry  in  Class  I  Appropriations  Account 


28 


(Rule  II:  For  every  debit  entry  there  must  be  a 

corresponding  credit  entry,  or  entries;  and  vice 

versa.) 

Each  of  the  missionaries  named  above  now  has  $83.33 

to  his  credit,  the  amount  being  payable  to  him  during  the 

month  of  April,  or  later,  as  salary  appropriated  by  the 

Board. 

Taking  the  sample  Memo.  Book,  and  Journal,  proceed 
now  to  post  the 

TRANSACTION  OF  APRIL  3rd 

By  reviewing  page  11  again,  we  see  that  General 
Treasurer  Account  must  receive  a  credit  of  the  total  amount 
of  debit  items  (or  charges)  against  the  Mission,  contained 
in  the  Monthly  Statement  received  from  New  York.  This 
is  entered  as  a  single  item,  and  in  this  case  amounts  to 
$475.00  (see  General  Treasurer  Ac&t  below). 

The  debit  of  this  amount  will  be  made  up  of  a  number 
of  Dr.  entries  placed  in  the  Accounts  (mainly  of  mission- 
aries) for  whom  the  General  Treasurer  has  paid  out  money 
in  the  U.  S. 

We  will  suppose  the  Monthly  Statement  from  New 
York  indicated  the  following: 


Dr. 


(Monthly)  Statement  for  Feb.,  19 IJ^  Cr. 


Feb. 

3 

Feb. 

5 

Feb. 

8 

Feb. 

10 

Feb. 

15 

Feb. 

30 

H.    Tames 

(Home   Life  Ins. 
Co.) 

T.   Jones 

(M.  Ward  &  Co.) 

Jas,    Arthur 

(M.  Ward  &  Co.) 

R.    Brown 
(Wanamaker) 

B.    Ward 

(Pres.  Min.  Fund) 

Chapel  No.   2 

(B.    Smith   &    Co., 
lumber) 

Total   charges 


$75 

00 

65 

00 

55 

00 

25 

00 

80 

00 

175 

00 
00 

$475 

1 


29 


r-'J 


^m<iMM| 


f  I 


1" 


i! 


These,  then,  are  all  debit  items  to  be  placed  on  the 
Dr.  side  of  the  Accounts  to  which  they  belong. 

The  single,  total  credit,  and  the  six  debit  items  would 
be  posted  as  follows: 


Dr. 


General  Treasurer  Account 


Cr. 


1914 

1914 

April 

1 

To  Class  I  Approps., 
1014-15 

23 

$10,000  00 

April 

8 

By   Sundry   Acc'ts 
(Feb.    Statement) 

28 

$475 

00 

1     i                                        1     1            1    II           1     1 

H,  James  Account 

1914 

1914 

April 

8 

To  Gen.  Treas.  Acc't. 
(Feb.    Statement) 

28 

$75 

April 

1 

By  Class  I  Approps. 
(salary) 

26 

$88 

88 

i     1 

1            1      II           II 

T.  Jones  Account 

1           1 

1914 

1914 

AprU 

8 

To  Gen.  Treas.  Acc't. 
(Feb.    Statement) 

28 

$86 

00 

April 

1 

By  Class  I  Approps. 
(salary) 

26 

$88 

88 

1     1 

Ja 

1            1     II           1      1                                           1 

,8.  Arthur  Account 

1914 

1914 

April 

8 

To  Gen.  Treas.  Acc't. 
(Feb.    Statement) 

28 

$56 

00 

April 

1 

By  Class  I  Approps. 
(salary) 

26 

$83 

83 

1                                      I     1          1     II          1     1                                      III 

R.  Brown  Account 

1914 

1914 

April 

8 

To  Gen.  Treas.  Acc't. 
(Feb.    Statement) 

28 

$25 

00 

April 

1 

By  Class  I  Approps. 
(salary) 

26 

$83 

83 

B.  Ward  Account 

1914 

1914 

April 

8 

To  Gen.  Treas.  Acc't. 
(Feb.    Statement) 

28 

$80 

00 

April 

1 

By  Class  I  Approps. 
(salary) 

26 

$88 

S3 

30 


r  V^ 


1    ]   ^ 


Dr. 


Chapel  No,  2  Account 


Cr. 


1914 
April 


To  CJen.  Treas.  Acc't. 
(Feb.    Statement) 


28 


$175 


00 


The  $175  paid  out  in  the  U.  S.  by  the  General  Treas- 
urer, indicates  that  lumber  had  been  ordered  from  the 
U.  S.  for  a  Chapel,  which  was  known  as  Chapel  No.  2. 
Consequently  when  the  charge  came  out  to  the  Field  Treas- 
urer, he  entered  the  amount  as  a  debit  in  the  Chapel  No.  2 
Account. 

Note:  All  the  debit  entries  in  the  small  Accounts  above, 
added  together,  equal  the  one  credit  entry  in  Gen- 
eral Treasurer's  Acc't  (i.  e.,  $475),  thus  proving 
Rule  II  again. 

Taking  up  the 

TRANSACTION  OF  APRIL  4th 
{See  Memo.  Book  and  Journal) 

We  are  dealing  here  with  a  charge,  received  in  the 
Monthly  Statement  from  N.  Y.,  against  T.  Jones  (mission- 
ary)— but  it  is  an  error,  as  T.  Jones  has  purchased  no 
goods  from  Montgomery  Ward  &  Co.,  and  does  not  owe 
the  General  Treasurer  the  $65  charged  against  him.  As 
soon  as  the  Field  Treasurer  becomes  satisfied  that  it  is  a 
mistake,  he  makes  a  Journal  entry  (see  p.  23)  charging, 
or  debiting  General  Treasurer  Account  and  crediting  T. 
Jones*  Account.  When  the  Field  Treasurer  next  sends  a 
Statement  from  the  field  to  the  General  Treasurer  in  N.  Y., 
this  "charge"  item  will  be  included  with  explanation  and 
the  General  Treasurer  will  "accept  the  charge"  and  find 
its  rightful  owner. 

First — The  debit  in  the  General  Treasurer  Account. 

81 


M 


Dr. 


General  Treasurer  Account 


Cr. 


1914 
April 


April 


To  Class  I  Approps., 
1914-15 

To  T.   Jones  A/C 
(Feb.    Statement) 


•35 

Ho 

1914 

23 

$10,000 
65 

00 
00 

April 

8 

By   Sundry   Acc'ts. 
(Feb.    Statement) 


23 


$476 


00 


Next,   the   corresponding   credit   entry   in   T.    Jones' 
Account. 


Dr. 

1 

T. 

Jones  Account 

Cr. 

1914 

1914 

April 

8 

To   Gen.   Treas.   A/C 
(Feb.   Statement) 

28 

$65 

00 

April 

1 

By  Class  I  Approps. 
(salary) 

27 

$88 

83 

April 

6 

By  Gen.  Treas.  A/C 
(Feb.  Statement) 

28 

66 

00 

It  is  now  apparent  that  though  T.  Jones  had  been 
charged  with  this  $65,  he  is  now  credited  with  it  also,  so 
that  it  does  not  affect  his  Account  in  any  way. 

Notes  (a)  If  a  charge  comes  out  in  the  "Monthly  State- 
ment" from  N.  Y.,  which  the  Field  Treasurer 
knows  does  not  belong  to  any  Personal  Account, 
or  to  any  Appropriation  Account  in  his  Mission, 
he  may  enter  it  at  once  as  a  debit  in  an  Account 
called  Suspense  Account,  pending  further  advices 
from  New  York.  If  the  General  Treasurer  directs 
that  it  be  "returned"  to  him,  then  credit  Suspense 
Acc't  with  the  item  and  enter  it  as  a  debit  in  Gen- 
eral Treasurer  Acc't. 

Note:  (h)  Never  attempt  to  correct  an  error  with  an- 
other Field  Treasurer  direct.  Return  the  credit 
or  debit  to  N.  Y.  and  give  all  available  informa- 
tion. The  New  York  Office  will  correct  the  mis- 
take with  the  other  Mission. 
Looking  at  the  Memo.  Book  (p.  21)  and  the  Journal 

(p.  23)  again  we  come  to  the 

32 


" 


'  \ 


w 


kV 


TRANSACTION  OF  APRIL  5th 
{Review  pp,  15  and  16) 

Cash  is  received,  therefore  enter  debit  item  in  Cash 
Account, 

Certificate  of  Credit  is  given  out,  therefore  credit  C. 
of  C.  Account, 

Dr.  Cash  Account  Cr. 


1914 
April 


To   Cert,   of  Credit 
A/C    (No.    987— B. 
Ward) 


23 

$5 

00 

Dr. 


Certificates  of  Credit  Account 


Cr. 


1914 
April 

5 

By   Cash    (from   B. 
Ward) 


23 


$5 


00 


The  transfer  of  this  item  and  all  items  like  it,  to  N.  Y., 
is  explained  on  page  16. 

Note:  If  B.  Ward  buys  a  C.  of  C,  and  instead  of  pay- 
ing cash  for  it,  asks  that  his  Account  "6e  charged" 
with  the  amount,  then  the  Field  Treasurer  will 
make  the  following  entry  in  the  Journal :  B,  Ward 
Account,  Dr.,  To  Cert,  of  Credit  Acc't,  Certificate 
No.  987.  Of  course,  Cash  Account  would,  in 
this  case,  receive  no  entry,  as  no  cash  would  have 
passed. 
Next  in  the  Journal  (p.  23)  is  the 

TRANSACTION  OF  APRIL  7th 

The  Memo.  Book  and  Journal  show  that  the  General 
Treasurer  has  remitted  three  Bills  of  Exchange,  of  $500 
each  [in  partial  discharge  of  the  "obligation"  against  him, 
represented  by  Appropriations']   (see  page  11). 

33 


,; 


( 
( 


As  the  General  Treasurer  gives  out  B/E's,  his  Ac- 
count must  be  credited  with  what  he  sends. 

As  B/E  Account  receives,  that  Account  must  be  debited 
with  the  amount  taken  in. 


Dr. 


General  Treasurer  Account 


Cr. 


1914 

1914 

April    : 

I   To  Class  I  Approps.,    28  $10,000 
1914-15 

00 

April 

8 

By    Sundry    Acc'ts. 
(Feb.  Statement) 

23 

$475 

00 

April    ! 

J  To  T.   Jones  Acc't.       28          65 
(Feb.  Statement) 

00 

April 

7 

By    B/E's    (No.    271, 
272,   273    @    $600) 

28 

1500 

00 

Bills  of  Exchange  Account 

1914 

April 

7  To   Gen.    Treas.    A/C 
(No.    271,    272,    273 
@    $500) 

23   $1500 

00 

TRANSACTION  OF  APRIL  10th 

As  the  Field  Treasurer  needs  cash  for  making  pay- 
ments, he  sells  one  of  the  Bills  of  Exchange.  [Note :  It  is 
assumed,  for  the  sake  of  simplicity,  that  the  Field  Treas- 
urer receives  $500  (U.  S.  money)  in  exchange  for  his  Bill 
of  Exchange  for  that  amount.  In  reality  he  will  receive 
the  local  currency  of  the  district  at  a  current  rate— which 
will  be  explained  later.] 

Since  Bills  of  Exchange  Acc't  gives  out  a  Bill,  that 
Account  will  be  credited  with  the  amount  of  it. 

Since  cash  is  received  in  exchange  for  the  B/E,  Cash 
Account  must  be  debited  with  the  actual  amount  of  cash 
received. 

Dr.  Bills  of  Exchange  Account  ^r. 


1914 
April 


To  Gen.  Treas.  A/C 
(No.  271,  272,  273 
@    $500) 


23 


$1500 


00 


1914 
April 


10 


By   Cash    A/C 
(No.   271) 


$500 


00 


iV 


Dr. 

Cash  Account 

Cr. 

1914 

April 

5 

To  Cert,  of  Cred.  A/C 
(No.  987,  B.  Ward) 

28 

$5 

00 

April 

10 

To  Bills  of  Ex.  A/C 
(No.   271) 

23 

600 

00 

Note:  Cash  Acc't  is  indebted  (debited)  "To  the  Bill  of 
Exchange"  for  the  cash  received.  Therefore  the 
entry  'To  Bills  of  Exchange  Account $500." 

TRANSACTION  OF  APRIL  12th 

The  Field  Treasurer  receives  a  notice  that  an  appro- 
priation has  been  made  of  $3,000  for  Residence  No.  5.  This 
transaction  should  be  entered  the  same  as  that  of  April 
1st,  except  the  credit  should  be  given  to  "Residence  No. 
5  Account."  The  General  Treasurer  Account  must  be 
charged  with  the  amount  since  he  must  furnish  it  and 
Residence  No.  5  Account  must  be  credited  since  that  ac- 
count receives  the  appropriation. 

The  Journal  indicates  the  two  accounts  affected  and 
they  will  appear  in  the  Ledger  as  follows: 


Dr. 

General  Treasurer  Account 

Cr. 

1914 

1914 

April 

1 

To  Class  I  Approps., 
1914-15 

28 

110,000 

00 

April 

8 

By   Sundry  Acc'ts. 
(Feb.  Statement) 

23 

$475 

00 

April 

5 

To  T.   Jones   Acc't. 
(Feb.  Statement) 

23 

65 

00 

April 

7 

By    B/E's    (271,    272, 
273  @  $500 

23 

1500 

00 

April 

12 

To  Res.  No.  5  Acc't. 

28 

8000 

00 

Residence  No,  5  Account 


1914 
April 


12 


By  General  Treasurer 
(Board's  Approp.) 
(Notice  No.  864) 


23 


$3000 


00 


34 


86 


,; 


TRANSACTION  OF  APRIL  15TH 

(See  Memorandum  Book  and  Journal — Review  Building 

Drafts,  page  13) 

The  Field  Treasurer  requires  cash  for  payments  on 
Residence  No.  5  which  is  in  process  of  construction.  He 
draws  a  Building  Draft  himself,  on  the  General  Treasurer. 
As  soon  as  the  Draft  is  filled  out,  it  must  be  charged  (i  e., 
entered  as  a  debit)  to  Bills  of  Exchange  Ac&t  (for  that 
Acc't  must  be  assumed  to  have  just  received  it). 

And  General  Treasurer  A/C  must  be  credited  with  it, 
since  the  Bill  is  the  means  of  getting  the  money  for  Resi- 
dence No.  5  from  him,  and  it  is  as  though  he  had  sent  the 
Draft  out  Since  General  Treasurer  gives  out  cash  for  the 
Bill,  his  Account  is  to  be  credited  (see  Rule  I.)  These  two 
entries  are  posted  below : 


Dr. 


Bills  of  Exchange  Account 


Cr. 


1914 
April 

April 


To   Gen.   Treas.   A/C 
(No.    271,   272,   273 

@    $500) 

To   Gen.   Treas.   A/C 
(Bldg.    Dept.   No.  56) 


1914 

23 

$1500 

00 

April 

10 

23 

500 

OD 

By  Cash   Acc't.    (No. 
271) 


28 


$500 


00 


General  Treasurer  Account 


1914 
April 

April 

April 


To  Class  I  Approps., 
1914-15 

To  T.  Jones  A/C 
(Feb.  Statement) 

To  Res.  No.  5  A/C 


23 
23 
23 


$10,000 
65 

3000 


00 
00 
00 


1914 
April 

April 

April 


8 

7 
15 


By   Sundry  Acc'ts. 
(Feb.  Statement) 

By   B/E's    (271,   272, 
273  @  $500) 

By  Bills  of  Ex.   A/C 
(Draft  No.   66) 


28 
23 
23 


$475 

1500 

500 


00 
00 
00 


In  the  above  Account  the  General  Treasurer  is  charged 
on  April  12,  with  $3,000,  the  amount  of  the  Appropriation 
for  Residence  No.  5,  and  on  April  15th  he  is  credited 
with  $500  of  the  $3,000,  by  reason  of  the  B/E,  drawn  by 

36 


«v 


the  Field  Treasurer  to  produce  the  money  for  the  $500 
pajmient. 

The  Field  Treasurer  now  takes  the  $500  Draft  and 
sells  it  at  the  Bank,  and  is  supposed  to  have  received  $500 
(U.  S.  money)  in  return  for  it. 

Since  Bills  of  Exchange  Account  gives  out  the  Bldg. 
Draft,  that  Account  must  be  credited. 

And  since  cash  is  received  for  it.  Cash  Acc't  must  be 
debited.     The  Accounts  showing  these  entries  follow: 

Dr.  Bills  of  Exchange  Account  Cr. 


1914 

1914 

April 

7 

To  Gen.  Treas.  A/C 
(Nos.  271,  272,  273 
@   $500) 

23 

$1500 

00 

April 

10 

By  Cash  Acc't.  (No. 
271) 

28 

$500 

00 

April 

15 

To  Gen.  Treas.  A/C 
Bldg.  Draft  No.  66) 

23 

500 

00 

April 

15 

By  Cash  Acc't.  (Bldg. 
Draft    No.    66) 

23 

$500 

00 

Cash  Account 

1914 
April 

April 

April 


5 
10 
15 


ITo  Cert,  of  Cred.  A/L 
(No.  987,  B.  Ward) 

To    B/E    Acc't.    (No. 
271) 

To  B/E  (Bldg.  Draft 
No.   56) 


28 

$5 

00 

23 

500 

00 

23 

500 

00 

The  Transaction  of  April  15th  has  now  been  posted, 
and  the  Field  Treasurer's  books  show  $500  cash  on  hand 
to  be  expended  upon  Residence  No.  5,  for  which  there  is 
an  Appropriation  from  the  Board  of  $3,000. 

TRANSACTION  OF  APRIL  16th 
The  Journal  shows  that  on  April  16th  the  Field  Treas- 
urer paid  out  $25  cash  and  received  a  New  York  Money 
Order  in  return.    The  Account  of  the  missionary  who  pre- 
sented the  Order  is  not  affected. 

New  York  Money  Order  Acc't  is  debtor  (having  re- 
ceived the  Order). 

Cash  Account  is  creditor  (having  paid  out  cash). 

37 


.; 


Dr. 


New  York  Money  Order  Account 


Cr. 


1914 

April 

16 

To  Cash  A/C   (No. 
717,  R.   Brown) 

23 

126  00 

Cash  Account 

1914 

1914 

April 

5 

To  Cert,  of  Cred.  A/C 
(No.  987,  B.  Ward) 

28 

$5 

00 

April 

16 

By  N.  Y.  M.  0.  Acc't. 
(No.  717,  R.  Brown) 

28 

$25 

00 

April 

10 

To   B/E   Acc't    (No. 
271) 

28 

500 

00 

April 

15 

To  B/E  Acc't.  (Bldg. 
Draft  No.  66) 

28 

500 

00 

Note  :  For  the  above  review  p.  17  on  N.  Y.  Money  Orders. 


TRANSACTION  OF  APRIL  17TH 

Here  we  find  that  James  Arthur,  a  missionary,  on 
April  17th,  drew  $20  of  his  salary  of  $83.33  standing  to 
his  credit  for  the  month  of  April. 

Cash  was  given  out,  therefore  Cash  A/C  will  be 
credited, 

James  Arthur  received  $20 ;  therefore  Jas.  Arthur  A/C 
will  be  debited. 


Dr. 


Cash  Account 


Cr. 


1914 
April 

April 

April 


5 
10 
15 


To  Cert,  of  Cred.  A/C 
No.  987,  (B.  Ward) 

To  B/E  A/C    (No.  271) 


To    B/E    A/C    (Bldg. 
Draft  No.  56) 


28 
28 
28 


$6 

600 
500 


00 
00 
00 


1914 
April 

AprU 


16 
17 


By  N.  Y.  M.  O.  A/C 
(No.  717,  R.Brown) 

By  James  Arthur  A/C 
(salary) 


28 
23 


$25 

20 


00 

00 


I 


iV 


Dr. 


James  Arthur  Account 


Cr. 


1914 
April 

April 


8 

17 


To  Gen'l  Treas.   A/C 
(Feb.  Statement) 

To   Cash    (salary) 


1914 

23 

$55 

00 

April 

1 

23 

20 

00 

By  Class  I  Approps. 
(salary) 


23 


$83 


33 


Note  :  This  last  A/C  shows  that  Jas.  Arthur  has  only  $8.33 
to  draw  for  the  remainder  of  the  month. 


TRANSACTION  OF  APRIL  20th 

A  local  Government  Official  has  contributed  $175 
toward  the  erection  of  a  Chapel. 

Chapel  No,  2  A/C  must  be  credited  with  this  gift  (see 
bottom  p.  24). 

Cash  A/C  must  be  debited  (money  having  been 
received) . 


Dr. 


Chapel  No.  2  Account 


Cr. 


1914 
April 


To   Gen,    Treas.    A/C 
(Feb.  Statement) 


23 


$175 


1914 
April 


20 


By  Cash  (Grovemment 
Official) 


93 


$175 


Cash  Account 


1914 
AprU 

April 
AprU 

AprU 


10 
15 

20 


To  Cert,  of  Cred.  A/C 
(No.  987,  B.  Ward) 

To  B/E  A/C  (No.  271) 

To    B/E    A/C    (Bldg. 
Draft  No.  56) 

To  Chapel  No.  2  A/C 
(Gov.   Official) 


1914 

23 

$5 

00 

April 

16 

28 

500 

00 

April 

17 

23 

500 

00 

April 

80 

28 

175 

00 
00 

$1180 

By  N.  Y.  M.  O.  A/C 
(No.  717,  R.  Brown) 

By   Jas.    Arthur   A/C 
(salary) 

By   Balance   to    next 
Account 


28 
28 

23 


$25 

20 
1135 


$1180 


00 
00 
00 

00 


39 


BALANCING  ACCOUNTS 

Note  :  In  addition  to  the  Dr,  entry  of  April  20th,  which  has 
just  been  made  in  the  above  A/C,  a  credit  entry 
has  also  been  made,  under  date  of  April  30th. 

This  entry  represents  the  process  called  "balancing 
the  Account".  The  difference  between  the  Dr.  and  Cr.  side 
is  called  the  Balance  of  the  Account. 

If  the  Dr.  side  is  the  greater,  the  balance  is  a  Dr. 
Balance, 

If  the  Cr.  side  is  the  greater,  the  balance  is  a  Cr, 
balance. 

In  the  above  example,  Cash  Account  is  charged  with 
(i.e.,  it  is  "responsible"  to  some  one  for)  $1,135,  the  balance 
being  a  debtor  balance. 

In  order  to  show  the  totals  of  the  columns  equal,  the 
difference  between  the  two  sides  must,  of  course,  be  entered 
on  the  smaller  side  (in  this  case  on  the  Cr.  side). 

When  the  balance  is  brought  down,  however,  to  a  new 
Cash  Account,  the  balance  as  above  must  be  entered  on  the 
Dr.  side,  as  this  difference  is  really  the  part  of  the 
debit,  which  is  not  covered  or  offset  by  any  credit  or  credits. 


40 


I 


sV 


I 


THE  CASH  BOOK 

(Review  page  19  again) 

The  Cash  Book  is  virtually  a  section  of  the  Journal, 
kept  apart  by  itself,  and  contains  a  record  only  of  trans- 
actions involving  the  receipt  or  disbursement  of  cash.  Its 
form  is  slightly  different  from  that  of  the  Journal,  though 
it  is  like  the  Journal  in  many  ways.  Items  entered  in  the 
Cash  Book  are  not  entered  in  the  Journal.  They  are  posted 
directly  in  the  Ledger  from  the  Cash  Book. 

Cash  (or  cheques)  received  are  entered  on  the  left-hand 
or  debtor  side  of  the  Cash  Book. 

Payments  made  in  cash  (or  by  cheque)  are  entered 
on  the  right-hand  or  credit  side  of  the  Cash  Book. 

No  entries  should  be  made  in  the  Cash  Book  excepting 
those  that  have  to  do  with  receipt  or  disbursement  of  actual 
Cash. 

Following  are  the  cash  items  of  our  Accounts,  entered 
in  a  Cash  Book  (see  Memo.  Book,  page  21). 


41 


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8 

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tLi 

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/-^          -O 

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n       n 

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^       S 

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^^ 

^^             ^^ 

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o 

a> 

a 

a 

p.       p. 

Cq 

^^ 

<! 

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u 

s 

8 

a 

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u 

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1 

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8 

8             8 

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4>> 
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I- 

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J?  •          ►SO 

kl 

o  Cert,  of 
No.  987,  ( 

o   B/E   N 
$500 

0  Bldg.   D 
Acc'L)  N 
No.   6) 

o  Chapel  ] 
(gift  Gov. 

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H               H 

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' 


Note:  The  item  of  April  25th  has  been  inserted,  showing 
that  on  that  date  the  sum  of  $15  was  drawn  from 
the  Bank  and  placed  in  the  Office  Cash  till.  For 
this  an  entry  on  both  sides  of  the  Cash  Book  is 
needed. 

Cash  (Office)  receives;  therefore  it  is  debited  with 
the  amount. 

Bank  gives  out;  therefore  it  is  credited  with  the 
amount. 

[The  debit  and  credit  would  just  be  reversed,  if 
cash  passed  from  the  Office  Cash  to  the  Bank.] 

BALANCING  THE  CASH  BOOK 

Office  Cash  must,  of  course,  be  balanced  with  Office 
Cash;  Bank  Cash  must  be  balanced  with  Bank  Cash. 

There  must  always  be  a  Dr.  Balance  in  these  two  Ac- 
counts, and  in  order  to  make  the  totals  of  the  Cr.  and  Dr. 
Columns  eqiuil  each  other,  the  debit  balance  must  be  entered 
on  the  Cr.  side  "By  balance  carried  down",  etc. 

These  balances  (appearing  as  balances  entered  on  the 
credit  side,)  are  afterwards  brought  down  to  the  debit  side 
of  the  Cash  Book  as  the  first  entries,  commencing  the  new 
month. 

HOW  TO  POST  THE  CASH  BOOK 

(a)  Each  item  on  the  debit  side  of  the  Cash  Book  is  posted 
on  the  credit  side  of  the  Account  named,  as  Certificate 
of  Credit  Account  which  will  contain  a  credit  entry 

"By  Cash,  (No.  987,  B.  Ward) $5.00." 

Exception:  Transfers  from  Bank  to  Cash,  or  vice 
versa  are  not  posted  at  all  as  individual  items,  and 
therefore  a  check  (  V  )  is  placed  opposite  each  entry 
to  show  it  must  be  omitted  when  posting  the  separate 
items  to  their  Accounts.     (See  Note  below.) 

43 


'mmmmumtmm 


(b)  The  monthly  total  of  the  Office  (Cash  Receipts)  Col- 
umn, is  posted  to  the  Dr,  side  of  Cash  Account  (Cash 
Account  having  received  this  amount  of  cash  during 
the  month  must  be  debited  with  it,  and  it  is  entered 
in  one  sum  total  only  in  the  Ledger  Cash  Account). 

(c)  The  monthly  total  of  the  Bank  (Cash  Receipts)  Col- 
umn, is  posted  to  the  Dr.  side  of  Bank  Account  (Bank 
Account  having  received  this  amount  of  cash  during 
the  month,  must  be  debited  with  it,  and  it  is  entered 
in  one  sum  total  only) . 

(d)  Looking  at  the  Credit  side  of  the  Cash  Book: 

Each  item  on  the  Cr,  side  must  be  posted  on  the  Dr. 
side  of  each  Account  named  in  the  item,  as  N.  Y. 
Money  Order  Account  which  will  contain  a  debit  entry 

"To  Cash  Account  (No.  717,  R.  Brown) $5.00." 

Exception :  The  transfer  of  April  25th  from  the  Bank 
to  Cash  must  not  be  posted  separately  in  the  Ledger 
Cash  Account  (see  Exception  above)  and  it  is  there- 
fore checked  (  ^l),  showing  it  is  to  be  omitted  when 
posting  the  items  to  their  separate  Accounts. 

(e)  The  monthly  total  of  the  Office  (Cash  Payments)  Col- 
umn, is  posted  to  the  Cr.  side  of  Cash  Account  in  the 
Ledger  (Cash  having  been  paid  out  to  the  amount  of 
this  total  during  the  month,  Cash  Account  is  credited 
with  it,  and  it  is  entered  in  the  Ledger  Cash  Account 
in  one  sum  total  only) . 

(f)  The  monthly  total  of  Bank  (Cash  Payments)  Column, 
is  posted  to  the  Cr.  side  of  Bank  Account  in  the  Ledger 
(Bank  Account  having  given  out  this  amount  of  cash 
during  the  month,  must  be  credited  with  it,  and  it  is 
entered  in  the  Ledger  in  one  sum  total  only) . 
Caution:  Deduct  Balances  before  posting  totals.  Do 
not  include  balances  in  the  Accounts  on  hand  at  the 
beginning  or  at  the  end  of  the  month  in  posting  Cash 
and  Bank  totals  to  their  Ledger  Accounts. 

44 


Note:  When  cash  is  paid  out  for  an  Appropriation  Ac- 
count (as  for  itinerating  expenses  under  Class 
IV),  that  Account  must  be  debited  with  the 
amount  when  posting  to  the  Ledger,  just  as  every 
other  item  is  put  on  the  debit  side  of  its  Account 
in  the  Ledger,  if  it  appears  on  the  Cr.  side  of  the 
Cash  Book. 

Note:  It  may  seem  best  to  keep  also  a  Petty  Cash  Book 
for  small  and  frequent  expenditures.  However, 
it  is  likely  that  small  items  of  expenditure  can 
be  charged  at  once  into  Class  IX  Account  (Mis- 
sion and  Station  Expenses).  The  appropriation 
allotted  to  this  Class  IX  by  the  Mission  will  rep- 
resent the  credit  in  Class  IX  Account;  the  expendi- 
tures made  for  Class  IX  items  will  be  the  debits. 


WHAT  THE  BALANCES  IN  LEDGER  ACCOUNTS 

REVEAL 

1.  Cash  Account: 

The  debit  balance  (the  credit  side  of  this  Account  can 
never  be  the  greater)  shows  the  amount  of  cash  on  hand 
at  the  office,  and  the  actual  cash  must  balance  with  it. 

2.  Bank  Account : 

The  debit  balance  (the  Dr.  side  of  this  Account  must 
always  be  the  greater)  shows  the  amount  on  hand  at  the 
Bank  to  the  Field  Treasurer's  credit.  If  the  Bank  Account 
should  show  a  credit  balance,  it  would  mean  that  the  Bank 
Account  had  been  overdravm  and  that  the  Field  Treasurer 
owed  the  Bank  money.  The  Bank  would  charge  interest 
on  the  amount  of  the  overdraft.  No  Field  Treasurer  is 
authorized  to  create  such  a  situation. 

45 


.; 


S.    Appropriation  Accounts: 

The  Cr.  balance  in  all  Appropriation  Accounts  repre- 
sents the  amount  still  available  to  be  spent  for  that  Cla^s 
or  object.  A  debit  balance  should  never  occur  in  an  Appro- 
priation Account,  as  no  Treasurer  is  authorized  to  pay  out 
more  money  than  has  been  appropriated  (or  actually  re- 
ceived as  a  gift)  for  a  Class  or  Object.  (See  Exception 
below.) 

Exception:  Special  permission  has  been  granted  by  the 
Board  whereby  in  two  or  three  Missions  advances 
of  salary  may  be  made  by  the  Field  Treasurer  to 
cover  payments  for  supplies  purchased  in  quan- 
tity, made  necessary  by  distance  or  the  seasons, 
or  in  special  cases  arising  from  long  itinerating 
tours,  but  in  all  such  cases  Personal  Accounts 
must  be  liquidated  every  three  months. 
Ordinarily  Salary  or  Personal  Accounts  (Class  I) 
must  be  squared  every  month.  No  Field  Treas- 
urer is  authorized  to  lend  Mission  funds  to  any- 
one. 

Balances  in  Appropriation  Accounts  at  Close  of  Year: 

All  credit  balances  remaining  in  Appropriation  Ac- 
counts at  the  close  of  a  fiscal  year  revert  to  the  Board  and 
must  be  credited  in  the  General  Treasurer  Account, 
Exception  :  The  one  exception  is  that  of  Class  VIII.    The 
amounts  unspent  in  Class  VIII  (i.  e.,  credit  bal- 
ances)   are  carried  over  for  the  same  building 
operation  into  the  new  year,  as,  of  course,  the 
entire  sum  appropriated  was  intended  to  be  used 
for  that  special  object  and  is  available  for  it  until 
the  building  is  entirely  completed. 

4.    Bills  of  Exchange  Account: 

The  debit  balance  in  this  Account  will  represent  the 

46 


V 


(\ 


amount  of  Bills  of  Exchange  on  hand.  There  could  never 
be  a  credit  balance  in  this  Account,  as  No.  B/E*s  could  be 
given  out  (sold)  when  none  were  on  hand.    (Review  p.  13.) 

5.    Field  Money  Orders  Account  (Certificates  of  Credit). 

This  Account  is  balanced  each  quarter  by  entering 
(using  the  Journal  for  the  original  entries)  a  debit  in  the 
Account,  equal  to  all  the  Certificates  of  Credit  sold  during 
the  quarter.  The  corresponding  credit  entry  must  be  made 
(Rule  II)  on  the  credit  side  of  General  Treasurer  Account. 
The  final  step  here  is  the  listing  of  all  C.  C.'s  sold  during  the 
quarter  in  a  Statement,  as  a  credit  to  the  General  Treas- 
urer (on  the  debit  side)  and  forwarding  the  statement  to 
New  York  (see  pp.  15  and  16),  thereby  balancing  the  ac- 
count for  the  quarter. 

Other  Ledger  Accounts  are  treated  elsewhere. 

THE  TRIAL  BALANCE 

When  complete  postings  have  been  made  from  Journal 
and  Cash  Book  into  Ledger  Accounts,  find  balances  (on 
one  side  or  the  other)  in  all  the  Accounts;  enter  these 
balances  on  the  lesser  side  of  each  Account  (see  Cash 
Book  entry,  p.  42),  and  "balance" — making  the  totals  of 
the  columns  equal. 

Since  we  have  the  Rule  (II)  that  every  credit  entry 
must  have  a  corresponding  debit  entry,  or  entries,  and  vice 
versa,  it  must  follow  that  the  sum  of  all  the  debit  entries 
of  all  the  Accounts  in  the  Ledger  must  equal  the  sum  of 
all  the  credit  entries  of  these  same  Ledger  Accounts.  {Bal- 
ances are  not,  of  course,  regular  entries,  and  are  not 
included.) 

A  Trial  Balance  is  obtained  by  thus  adding  (simply 
on  memorandum  paper)  all  the  debits  of  the  Accounts,  and 
all  the  credits  of  the  same  Accounts,  in  separate  Dr.  and 
Cr.  columns  and  noting  that  the  totals  must  equal  each 

47 


> 


f.t 


m-  4 


other.  If  the  totals  of  the  two  columns  are  not  equal,  it 
is  probable  that  some  mistake  has  been  made  in  posting  to 
one  of  the  Ledger  Accounts. 

TRIAL  BALANCE  SHORTER  METHOD 

If  the  total  of  all  debits  in  the  Ledger  Accounts  is 
equal  to  the  total  of  all  the  credits  in  these  same  Accounts, 
then  it  must  be  true  that  all  the  debit  balances  added 
together  must  equal  all  the  credit  balances  added  together. 

Therefore,  find  the  Trial  Balance  by  comparing  the 
total  of  all  the  debit  balances,  with  the  total  of  all  the  credit 
balances  of  the  Accounts  in  the  Ledger. 

The  Trial  Balance  is  not  an  Account;  it  is  merely  a 
statement  showing  the  Accounts  to  be  correct,  and  is  of 
no  further  use.  It  is  usually  drawn  up  at  the  close  of 
every  period  for  which  a  report  is  to  be  made. 

THE  BALANCE  SHEET 

The  Balance  Sheet  is  an  abstract  of  the  business  Lia- 
bilities and  Assets.  It  gives  the  merchant  a  bird's-eye 
view  of  (1)  what  he  owes  and  what  is  owing  to  him;  (2) 
what  profit  or  loss  he  has  made;  (3)  what  his  capital 
amounts  to;  and  (4)  the  Balance  Sheet  proves  the  Ac- 
counts to  be  correct,  because  it  shows  the  capital  to  be  in 

actual  existence. 

Since  a  Mission  Field  Treasurer  does  not  keep  a  Cap- 
ital Account,  no  Balance  Sheet,  in  the  true  sense,  can  be 
made  up  from  his  Accounts,  but  one  could  be  composed  by 
appraising  the  Assets  in  his  field  and  placing  them  in  suit- 
able Accounts. 


48 


t% 


CHAPTER  V 

NATIVE  CURRENCY 

It  will  be  understood  that  the  examples  and  illus- 
trations thus  far  given  have  been  in  United  States  money 
generally  termed  "gold"  (meaning  dollars  and  cents,  based 
on  the  gold  standard  of  the  U.  S.)  for  the  sake  of  simplicity 
in  explaining  the  steps  in  bookkeeping. 

In  actual  practice.  Bills  of  Exchange  or  Building 
Drafts  when  sold  on  the  field  do  not  produce  dollars  and 
cents  in  U.  S.  money,  but  produce  Native  currency,  such  as 
Yen  in  Japan,  Mexicans  in  China,  Rupees  in  India,  etc. 

Since  a  Treasurer's  books  must  be  kept  in  one  cur- 
rency only,  it  will  be  necessary,  when  entering  Bills  of  Ex- 
change or  other  papers  made  in  gold,  to  reduce  the  same  to 
a  corresponding  amount  in  the  currency  of  his  accounts. 
In  the  case  of  Bills  of  Exchange  received  from  New  York 
this  can  be  done  by  using  an  arbitrary  or  an  average  rate 
and  adjusting  through  an  Exchange  Account  the  difference 
between  this  value  and  the  actual  value  determined  when 
the  bill  is  sold.  Personal  charges,  etc.,  are  usually  entered 
at  an  average  rate  for  the  month  or  quarter. 

The  amount  of  Mexicans  (for  example)  which  $100 
gold  (i.e.,  a  Bill  of  Exchange  for  $100)  will  realize  varies 
almost  daily  and  depends  upon  the  Rate  of  Exchange  on  the 

day  the  Bill  is  sold. 

This  Rate  of  Exchange  is  determined  by  several  fac- 
tors, among  which  are  (a)  the  cost  of  collecting  the  money 
which  the  Bill  represents;  (b)  the  charge  of  interest  on 
the  amount,  for  the  time  intervening  before  the  money  can 
be  collected  (from  the  Board  in  N.  Y.),  and  (c)  the  dis- 
tance from  a  large  money  center,  (d)  All  these  factors  are 
influenced  by  the  relation  between  imports  and  exports  of 

49 


the  countries  involved.  The  credit  of  the  countries  involved 
and  the  market  price  of  silver  may  also  seriously  affect 
Rates. 

A  Rate  of  Exchange  is  the  value  of  the  unit  of  the 
money  of  one  country,  expressed  in  the  money  of  another 
country. 

That  is:  $1  gold  (U.  S.)  will  purchase  on  a  certain  day 
2.22  Mexican  dollars  (China). 

The  value  of  the  unit  ($1.00)  =2.22  Chinese  Mexicans; 

or, 

1  Mexican  (Chinese)  is  equivalent,  on  a  certain  day, 
to  $.45  (U.  S.  gold). 

The  value  of  the  unit  (1  Chinese  Mexican)  =45  cents 
in  U.  S.  money,  i.  e.,  in  "gold". 

The  Rate  may  here  be  described  either  as  2.22,  or  as 
.45. 

By  dividing  the  unit  1  by  one  rate  (2.22)  the  equivalent 
rate  can  be  obtained  (.45)  and  vice  versa. 

Also,  divide  gold  amount  by  the  Rate  (in  gold  as  .45) 
to  obtain  Mexicans.  Multiply  amount  in  Mexicans  by  Rate 
(in  gold  as  .45)  to  obtain  gold  amount. 

The  Field  Treasurer  will  handle  cash  in  native  cur- 
rency only;  there  is,  of  course,  no  U.  S.  money  in  circula- 
tion on  the  foreign  field.  Disbursements  of  every  kind  will 
have  to  be  made  in  the  money  of  the  country  where  deal- 
ings take  place. 

Therefore,  when  selling  a  (gold)  B/E  for  $500 — for 
which  the  local  bankers  will  give  him  in  return  say  Mex- 
ican dollars  1111.11,  the  Field  Treasurer  will  make  the  fol- 
lowing entries  (through  the  Journal). — Item  of  April  10th. 


} 


Dr. 

Bills 

0 

/  Exchange 

;  Account 

Cr. 

1914 

5 

To    Gen.    Treas.    No. 
275     (received    this 
B/E   from   N.   Y.) 
$500   @   .46) 

Mexicans 

1914 
April 

10 

By  Cash  B/E  No.  275 
(sold    April    10    for 
$500) 

Mexicans 

April 

1086 

96 

1111 

11 

60 


•# 


Note  :  The  Cr.  side  of  this  Account  should  always  show  the 
value  of  the  B/E  in  both  currencies. 

Cash  Account 


1914 
April 


10 


To.  B/E  No.  275  (B/E 
Acc't.)    @    $600 
(sold  Apr.   10) 


Mexicans 


nil 


11 


As  the  Mexicans  are  expended  they  will  be  entered 
as  credits  in  Cash  Account  and  as  debits  in  the  Appropria- 
tion Account  involved. 

Note:  Dividing  the  Mexicans  (1111.11)  by  the  gold  ($500) 
gives  2.22  the  Rate  in  Mexicans. 
Dividing    the    gold     ($500)     by    the     Mexican 
(1111.11)  gives  the  Rate  in  Gold  =  .45. 

APPROPRIATIONS 

Classes  I,  II  and  III 

The  Board  appropriates  Native  Currency  for  all 
Classes  of  the  work,  except  for 

Class      I.     Salaries  and  children's  allowances. 
Class    II.     Cost  of  missionaries*  furloughs,  and 
Class  III.     New  missionaries'  outfit,  travel  and  salary. 

In  the  case  of  these  three  Classes  the  Board  agrees  to 
pay  the  amount  in  gold.  Therefore  a  current  rate  of  ex- 
change must  always  be  used  in  paying  salaries  and  chil- 
dren's allowances.  Since  the  total  appropriation  for  Class 
I  will  require  to  be  entered  in  native  currency,  and  the  dif- 
ference between  this  amount  and  the  sum  of  all  payments 
made  for  an  entire  year  will  possibly  differ  considerably, 
the  Treasurer  should  adjust  after  each  month's  payments 
of  salaries  these  differences  by  entries  through  Exchange 
Account  so  that  the  only  remaining  difference  to  the  end  of 

51 


m 


1)' 


any  given  month  would  represent  salaries  not  paid.  The 
Field  Treasurer,  in  crediting  Personal  Accounts  with  the 
salary  item  each  month  will  use  two  columns,  one  of  them 
showing  the  amount  in  gold  (as  on  p.  27),  followed  by  the 
amount  of  Native  Currency  which  the  gold  would  buy,  i.  e. : 


Dr. 


H,  James  Account 


Cr. 


1914 
April 


By  Class  I  Approps. 
(for  Apr.    @    2.22) 


27 


83 


Mexicans 


184 


99 


.^^ 


As  payments  are  made  to  missionaries  in  Native  Cur- 
rency their  Accounts  will  be  debited  with  the  amounts  in 
Native  Currency. 

EXCHANGE  ACCOUNT  EXPLAINED 

All  losses  in  exchange  are  charged  (i.  e.,  debited)  in 
this  Account;  all  gains  in  exchange  are  credited  in  this 
Account. 


} 


52 


CHAPTER  VI 

VARIOUS  ACCOUNTS 

The  number  of  Accounts  on  the  books  of  the  Field 
Treasurer  should  be  kept  as  small  as  possible. 

If  the  Treasurer  be  a  Mission  Treasurer,  who  deals 
with  Station  Treasurers,  one  Account,  headed  with  the 
name  of  the  Station,  should  be  sufficient  for  all  dealings 
with  that  Station. 

Excepting  Class  VIII — ^which  would  require  a  separate 
Account  for  each  building  or  property  on  the  books  of  the 
Mission  Treasurer.  The  Station  Treasurer  will  establish 
separate  Accounts  for  each  one  of  the  missionaries  in  his 
Station,  and  for  each  Appropriation  Account,  etc. 

The  Station  Treasurer  would  be  credited  on  the  Mis- 
sion Treasurer's  books  with  all  Appropriations  allotted  to 
the  Station  by  the  Board  and  the  Mission. 

The  Station  Treasurer  will  be  debited  on  the  Mission 
Treasurer's  books  with  all  remittances  made  to  him  to  take 
care  of  these  appropriations. 

The  Station  Treasurer's  Account  (on  the  Mission  Treas- 
urer's books)  will  also  be  debited  with  all  Certificates  of 
Credit  sold  by  the  Mission  Treasurer  to  missionaries  in  his 
Station,  and  debited  with  all  charges  received  from  New 
York,  against  missionaries  in  the  Station  involved.  These, 
the  Station  Treasurer  will  charge  against  the  individual 
missionaries. 

Note:  The  importance  of  sending  complete  and  accurate 
Reports  to  the  Mission  Treasurer  by  the  Station 
Treasurer  is  seen  just  here.     Without  such  Re- 

68 


ports,  with  full  details,  the  Mission  Treasurer 
cannot  make  suitable  Reports  to  the  General 
Treasurer,  as  he  is  required  to  do. 

Note  :  The  above  directions  will  have  to  be  modified  to  fit 
conditions,  in  cases  where  Salary  or  Appropria- 
tion Accounts  have  been  centralized,  i.  e.,  where 
the  Mission  Treasurer  will  himself  assume  most  of 
the  duties  formerly  left  to  the  Station  Treasurer, 
relieving  the  latter  of  the  details  of  bookkeeping 
and  administration. 


MISSION  FIELD  RECEIPTS  ACCOUNT 

The  Field  Treasurer  should  enter  as  credits  in  this 
Account  all  receipts  of  money  coming  under  this  head 
(charging  Cash  Account  with  the  same  amounts).  These 
Receipts  are  subject  to  expenditure  on  the  authority  of  the 
Mission,  and  when  so  disbursed,  must  be  charged  in  the 
Mission  Field  Receipts  Account  (crediting  Cash  Account). 
A  careful  record  should  be  kept  of  sources  from  which 
these  receipts  come,  such  as  tuitions,  hospital  receipts,  dis- 
pensary fees,  personal  gifts,  etc.,  also  the  special  purposes 
for  which  the  funds  are  used.  These  receipts  and  dis- 
bursements should  be  entered  on  the  quarterly  reports  to 
the  General  Treasurer. 

INTEREST  ACCOUNT 

If  the  bank  balance  of  a  Field  Treasurer  produces 
interest  allowed  by  the  Bank,  an  Interest  Account  should 
be  credited  with  the  amount.  This  sum  reverts  to  the 
Board  at  the  end  of  the  year  (unless  special  action  is  taken 
by  the  Board,  on  the  recommendation  of  the  Mission).  If 
no  request  is  made  by  the  Mission  concerning  the  use  of  the 
money  the  interest  accrued  would  be  debited  to  the  Inter- 
est Account  (having  previously  been  credited)  and  credited 

54 


in  General  Treasurer  Account,  This  credit  would  appear 
on  the  Statement  sent  the  General  Treasurer  at  the  close 
of  the  period  (unless,  as  previously  stated.  Board  permis- 
sion has  been  granted  to  use  the  interest  for  some  special 
object  on  the  Field). 


ii 


BUILDING  OR  EMERGENCY  DRAFTS  ACCOUNT 

As  already  noted  (see  page  13)  these  Drafts  are  filled 
out  by  the  Field  Treasurer  himself  on  blanks  furnished 
for  the  purpose  and  are  used  for  the  following  objects : 

(a)  To  realize  funds  for  the  purchase  of  property,  or  for 
building  operations,  authorized  by  the  Board. 

(b)  To  realize  funds  for  use  in  some  form  of  Mission  work 
for  which  appropriations  have  been  made,  and  for 
which  no  Bills  of  Exchange  are  on  hand  at  the  time ;  or, 

(c)  For  some  emergency,  clearly  falling  under  Board  sanc- 
tion and  regulations  as  set  forth  in  the  Manual. 

It  may  lend  clearness  to  the  accounting  if  a  special 
Account  is  opened  for  the  handling  of  these  Drafts,  instead 
of  placing  them  in  the  Bills  of  Exchange  Account  (page 
13).  This  Account  may  be  called  as  above — Building,  or 
Emergency  Draft  Account,  which  Account  would  be  debited 
with  the  Drafts  as  soon  as  filled  out.  General  Treasurer 
Account  would  be  credited. 

On  selling  the  Draft  for  cash,  the  Bldg,  or  Emergency 
Drafts  Account  would  be  credited  and  Cash  would  be 
debited.  As  Cash  was  spent  upon  a  building.  Cash  would 
be  credited,  and  the  Building  Account  would  be  debited. 


CLASS  VIII  ACCOUNTS 

Class  VIII  embraces  all  property  appropriations.  Each 
piece  of  property,  or  building  operation,  should  have  a 
separate  Account. 

55 


!!.;« 


The  credit  side  of  the  Account  will  be  filled  in  by  Ap- 
propriations from  the  Board  for  that  specific  object.  All 
gifts  received  direct  for  such  an  object  would  be  entered 
also  on  the  credit  side,  and  these  should  be  reported  to  the 
Mission  and  the  Board. 

The  debit  side  of  the  Account  will  be  filled  in  as  ex- 
penditures are  made  for  the  object  (building  or  property) 
involved.  The  close  of  a  fiscal  year  has  no  effect  on  the 
credit  balance  in  a  Class  VIII  Account.  It  remains  as  a 
credit  balance  until  expended  upon  the  object,  or  until 
reported  by  the  Missions  as  not  likely  to  be  needed. 

Accounts  for  buildings  (Class  VIII)  should  each  be 
numbered  and  the  designated  number  used  in  addition  to 
name  in  communicating  with  New  York.  Descriptions  or 
names  of  buildings  alone  are  likely  to  be  confused,  or  not 
understood  in  the  sense  recognized  on  the  field. 

Appropriations  for  property  (all  Class  VIII)  are  not 
included  in  the  original  yearly  appropriations,  but  are 
always  separate  and  distinct,  and  notifications  to  the  field 
are  made  on  separate  oflficial  numbered  blanks  sent  out 
from  the  General  Treasurer's  office  in  New  York.  In 
reporting  disbursements  against  these  special  appropria- 
tions, the  number  of  the  notice  of  appropriation  should 
always  be  given  on  quarterly  report  or  separate  property 
blank. 

Funds,  for  use  in  Class  VIII  operations,  are  not  sent 
out  in  Bills  of  Exchange  from  New  York,  but  after  the 
appropriation  has  been  made,  the  Field  Treasurer  is  author- 
ized to  sell  a  Building  Draft  (drawn  against  the  General 
Treasurer)  for  such  an  amount  as  shall  be  required  for 
the  building  operation  (or  for  the  purchase  of  property) 
in  the  near  future. 

The  Field  Treasurer  is  not  authorized  to  sell  Build- 
ing Drafts  even  after  an  Appropriation  Notice  is  received 
unless  there  is  an  immediate  demand  for  the  money. 

56 


t 


ii 


PERSONAL  ACCOUNTS  OF  MISSIONARIES 

The  salaries  of  missionaries,  while  on  the  field,  are 
paid  out  of  Class  I.  Children's  allowances  are  paid  out  of 
Class  I,  if  on  the  field.  If  salary  and  children's  allowances 
for  any  reason  are  not  payable  on  the  field  (i.  e.,  the  mis- 
sionary may  leave  on  furlough),  the  unused  part  of  his 
Class  I  appropriation  remains  as  a  balance  on  the  Field 
Treasurer's  books  until  the  close  of  the  year,  when  the 
Field    Treasurer    will    credit    it    to    General    Treasurer 

Account. 

Children  born  during  the  year  will  draw  regular  child's 
allowance  from  the  date  of  birth,  though  no  appropriation 
will  have  been  made.  The  amount  disbursed  is  to  be 
charged  against  the  General  Treasurer  in  his  Account  and 
reported,  with  the  child's  name  and  date  of  birth,  in  the 
Statement  forwarded  to  New  York. 


'11 


57 


■■;     1 


CHAPTER  VII 


t 


GENERAL  DIRECTIONS 

For  guidance  in  the  general  conduct  of  field  treasury 
matters,  see  the  Manual  of  the  Board.  Departures  from 
the  rules  of  the  Manual  may  be  made  only  upon  the  express 
authority  of  the  Board. 

Authority  for  Making  Disbursements: 

Excepting  the  use  of  miscellaneous  receipts  on  the 
field,  such  as  tuition  fees,  etc.,  Field  Treasurers  may  only 
make  disbursements  of  Mission  funds  on  the  authority  of 
the  Board. 

This  authority  is  given  through  appropriations,  passed 
in  formal  meetings  of  the  Board,  and  notified  to  the  field 
by  formal  communications.    These  are  of  two  kinds : 

(1)  The  "original  appropriations",  passed  by  the  Board 
at  the  beginning  of  a  fiscal  year,  covering  the  bulk 
of  the  work  to  be  conducted  during  the  year  are  noti- 
fied to  the  field  by  the  "Annual  Appropriation  Letter" 
from  the  Secretary's  office,  addressed  to  the  Mission. 
This  becomes  the  Field  Treasurer's  authority  for  mak- 
ing regular  disbursements  for  the  current  work. 

(2)  For  all  other  disbursements,  the  Field  Treasurer  must 
have  regular  "Notices"  from  the  General  Treasurer's 
office.  These  Notices  are  numbered,  and  give  the  date 
of  the  meeting  of  the  Board  at  which  the  appropria- 
tion was  made. 

In  writing  to  New  York  about  any  appropriation,  Field 
Treasurers  must  refer  by  number  to  this  "Notice" 

58 


\ 
9 


ii 


which  gives  date  of  the  meeting  of  the  Board  at  which 
the  appropriation  was  made. 

Note:  Most  emergencies  on  the  field,  which  might  call  for 
the  disbursement  of  funds  for  which  no  formal  ap- 
propriation has  been  made,  are  covered  in  the 
Manual,  and  Field  Treasurers  will  act  on  the 
authority  there  given.  For  authority  to  disburse 
funds  for  any  other  emergencies,  the  Board  must 
be  consulted.  Extreme  cases,  requiring  quick 
action  can,  of  course,  be  handled  by  the  Mission 
or  its  Executive  Committee. 

Getting  Funds  to  the  Field. 

Funds  are  transferred  from  New  York  to  the  Field 
by  means  of  Bills  of  Exchange  drawn  in  New  York  and 
by  Emergency  or  Building  Drafts  drawn  on  the  field  (see 
p.  12). 

(1)  Bills  of  Exchange  are  forwarded  to  the  Field  Treas- 
urer each  month  roughly  representing  one-twelfth  of 
the  original  appropriations  and  are  sold  by  him  as  the 
work  demands. 

Any  Bills  of  Exchange  on  hand  at  the  close  of  a 
fiscal  year  are  reported  in  the  Annual  Report  of  the 
Field  Treasurer,  and  are  carried  as  debits  in  the  Bills 
of  Exchange  Account  over  into  the  new  year. 

(2)  Emergency  or  Building  Drafts  (see  p.  13). 

All  funds  for  property  appropriations  are  realized  on 
the  field  by  the  sale  of  these  Drafts.  No  Bills  of  Ex- 
change are  sent  out  from  New  York  to  cover  Class 
VIII  appropriations.  These  drafts  should  only  be 
drawn  for  amounts  which  are  to  be  paid  out  in  the 
near  future. 

(3)  Funds  for  Emergencies  (see  Note,  p.  55). 

59 


■'■■ 

\ 


u 


Certificates  of  Credit  (see  pp.  15  and  16). 

These  should  always  be  used  by  missionaries  when 
making  payments  of  exact  sums  in  the  U.  S.  They  may 
be  sold  by  Field  Treasurers  for  cash  only,  or  by  debiting 
the  Personal  Account  of  the  Missionary,  if  solvent. 

Orders  for  Payment, 

Periodical  payments  will  be  made  by  the  New  York 
office,  on  written  request  of  the  missionary,  the  amount 
paid  out  on  his  behalf  being  charged  against  him  through 
the  Monthly  Statement  sent  to  the  Field  Treasurer. 

Special  Payments, 

Missionaries  may  wish  to  make  payments  in  the  U.  S., 
the  exact  amount  of  which  is  not  known.  They  may  effect 
such  payments  by  forwarding  to  payees  or  to  the  Board 
Forms  properly  filled  out,  which  will  be  furnished  by  Field 
Treasurers. 

These  Forms  must  be  lodged  with  the  New  York  Office 
(either  direct  by  the  missionary  or  indirectly  through  the 
payee)  before  payment  will  be  made,  as  the  Board  cannot 
undertake  to  disburse  money  for  individuals  without  writ- 
ten instructions  to  that  effect. 

Purchase  Orders, 

The  Board  has  a  Purchasing  Department  for  the  ac- 
commodation of  missionaries  and  through  this  Department 
they  can  purchase  to  advantage,  as  most  of  the  large  firms 
in  the  United  States  allow  a  special  discount  on  orders 
received  through  the  Board.  For  this  purpose  special 
Forms  are  furnished  on  which  the  missionary  can  write 
a  list  of  goods  required.  If  the  order  is  sent  direct  to  the 
firm  supplying  the  goods  the  discount  may  or  may  not  be 
granted;  in  such  a  case  an  Order  for  Payment  should  be 
sent  by  the  same  mail  to  the  General  Treasurer  in  New 
York  or  enclosed  with  the  order. 


r^, 


Indebtedness  of  Missionaries, 

The  system  of  Orders  for  Payment  and  Purchase 
Orders  is  a  source  of  danger  to  the  Personal  Accounts  of 
missionaries.  All  such  payments  made  by  the  New  York 
Office  must  be  charged  out  on  the  next  Monthly  State- 
ment against  the  missionary  involved,  and  must  be  col- 
lected from  the  missionary,  through  his  Account,  by  the 
Field  Treasurer.  The  latter  has  no  authority  to  lend  Mis- 
sion funds  to  workers,  and  overdrafts  on  salary  would  rep- 
resent loans  which  are  forbidden.  Hence  it  comes  that 
Orders  for  Payment  and  Purchase  Orders  must  be  counter- 
signed by  Field  Treasurers,  who  are  expected  to  exercise 
a  wise  and  helpful  oversight  with  reference  to  obligations 
which  it  will  be  his  duty  to  collect  for  the  Board.  The 
Field  Treasurer  should  notify  the  Executive  Committee  of 
the  Mission  of  any  cases  of  continued  or  excessive  Per- 
sonal indebtedness  of  missionaries,  and  if  allowed  to  stand 
the  Board  should  be  advised. 

New  York  Money  Orders  (see  p.  17). 

When  these  are  presented  to  the  Field  Treasurer  he 
will  pay  the  equivalent  of  the  gold  value  of  the  Order,  in 
Native  Currency,  at  the  current  rate  of  exchange,  or  at 
the  rate  he  is  using  for  salary  disbursements  for  that 
period. 

Travel  Items — From  the  Field. 

Class  II  contains  appropriations  to  cover  the  cost  of 
travel  and  freight  for  missionaries  while  going  or  coming 
on  regular  furlough.  The  "original  appropriations"  will 
show  what  these  appropriations  are,  and  the  Field  Treas- 
urer will  advance  funds  to  missionaries  duly  listed,  to 
cover  cost  of  tickets,  incidental  expenses  and  freight 
charges,  charging  all  amounts  thus  paid  out  against  Gen^ 
eral    Treasurer    Account,      The    General    Treasurer    will 


61 


charge  amounts,  properly  expended,  against  Class  II  appro- 
priations, which,  according  to  the  established  practice,  are 
held  in  New  York  and  are  adjusted  there. 

It  must  not  be  understood  either  by  the  Field  Treasurer 
or  the  missionary  that  these  advances  are  to  be  expended 
on  travel,  incidentals,  or  freight  up  to  their  limits;  the 
missionary  on  his  arrival  at  his  destinaton  must  report  his 
expenditures  and  his  balance  of  funds  in  hand,  together 
with  the  Clearance  Sheet  which  the  Field  Treasurer  gives 
him  on  leaving  the  field. 

Travel  Items — to  the  Field, 

On  arriving  at  his  post  on  the  field,  the  missionary 
must  report  his  balance  of  travel  funds  in  hand  to  his 
Field  Treasurer,  and  must  turn  over  to  him  his  Travel 
Blank  containing  his  items  of  expenditure  en  route. 

The  Field  Treasurer  is  expected  to  audit  this  "Travel 
Account",  calling  the  missionary's  attention  to  any  items 
of  expenditure  which  the  Board  does  not  regard  as  legiti- 
mate charges  against  Mission  funds  (see  Manual).  Any 
such  items  must  be  eliminated  from  the  Travel  Account 
and  must  be  charged  against  the  missionary  personally, 
together  with  the  balance  of  Travel  funds  in  his  hands. 
The  Travel  Account  must  then  be  forwarded  to  New  York 
for  final  adjustment. 

The  Clearance  Sheet. 

When  a  missionary  leaves  the  field  a  Clearance  Sheet 
must  be  furnished  him  by  the  Field  Treasurer  indicating 
the  date  to  which  his  salary  and  children's  allowances  (if 
any)  have  been  paid,  the  amount  advanced  for  tickets,  in- 
cidentals and  freight,  and  the  amount  of  credit  (or  debit) 
balance  standing  in  his  Personal  Account  at  the  date  of 
his  departure.  A  similar  Blank  will  be  given  the  mission- 
ary on  leaving  the  U.  S.  for  his  field ;  it  will  show  the  debits 
and  credits  of  his  Account. 

62 


♦> 


H 


t  ' 


r 


%  • 


Emergency  Furloughs, 

The  Manual  of  the  Board  will  indicate  the  conditions 
under  which  a  missionary  may  be  supplied  with  travel 
funds  when  the  items  do  not  appear  in  the  regular  appro- 
priations. When  the  conditions  are  present^  and  have  all 
been  met,  the  Field  Treasurer  may  advance  the  funds,  and 
the  bookkeeping  and  Clearance  Sheet  will  be  handled  as 
though  the  transaction  were  regular. 

Freight  Charges  from  New  York, 

On  shipments  from  the  United  States  the  freight 
charges  are  always  prepaid  to  port  of  entry,  and  all 
charges  are  forwarded  to  the  Mission  Treasurer  in  the 
following  manner.  Numbered  invoices  are  prepared  indi- 
cating for  whom  the  goods  are  shipped,  the  value  in  U.  S. 
Gold,  the  gross  and  net  weights,  the  cubic  measurement  of 
each  box  or  package  and  the  amount  of  freight  charges 
paid  on  each  individual  missionary's  goods  showing  the 
amount  to  be  charged  against  freight  allowance  and  against 
the  missionary.  At  the  top  of  the  invoice  is  given  the  total 
amount  of  freight  paid  and  the  total  measurements — this 
total  amount  is  charged  on  the  monthly  statement  as 
"freight  on  Invoice  Number  ".     The  Invoice  is  for- 

warded to  the  Mission  Treasurer  and  from  it  he  gets  the 
details  of  the  charge  on  the  statement.  To  each  mission- 
ary's freight  charges  (as  given  on  the  Invoice,  must  be 
added  expenses  on  the  goods  from  port  of  entry  to  destina- 
tion— such  as  duties,  landing  charges,  inland  freight,  etc. 

To  ascertain  the  proportion  of  such  expenses  paid  on 
the  field  chargeable  to  the  Board  or  to  the  personal  account 
of  the  missionary,  the  Mission  Treasurer  must  consult  the 
Manual  for  rules  regarding  freight  allowances.  From 
this  he  will  find  a  new  missionary  is  entitled  to  two  cubic 
tons  or  80  cubic  feet.  Now  we  will  suppose  that  R.  James' 
goods  measured  100  cubic  feet  and  the  charges  paid  by  the 
Mission  Treasurer  amounted  to  $50.     The  Board's  allow- 

63 


1' 


ance  would  be  80/100  of  $50,  or  $40,  and  20/100,  or  10, 
must  be  collected  from  the  missionary.  This  $40,  added 
to  the  amount  of  freight  allowance  as  shown  on  the  invoice, 
should  be  charged  against  General  Treasurer  Account  and 
entered  on  the  Quarterly  Statement  sent  to  New  York. 

Since  a  missionary  sometimes  receives  shipments  from 
places  other  than  New  York,  it  is  important  that  all  these 
freight  items  be  passed  through  his  personal  account,  and 
that  the  measurements  of  each  shipment  be  recorded  there 
in  order  that  the  Mission  Treasurer  may  know  when  the 
limit  of  the  Board's  liability  has  been  reached.  In  case  a 
shipment  has  been  made  on  the  basis  of  weight  not  cubic 
measurement,  the  measurements  should  be  made  and 
recorded  for  reference.  The  New  York  computation  of 
Board's  allowance  would,  of  course,  be  subject  to  correc- 
tion in  case  of  a  previous  shipment  from  some  other  port. 

Disbursements  for  Outfits, 

New  missionaries,  arriving  on  the  field,  will  often 
have  a  balance  of  Outfit  money  due  them  (as  noted  in  their 
Clearance  Sheet).  This  the  Field  Treasurer  will  pay  over 
to  them,  as  called  for,  charging  the  amount  to  the  General 
Treasurer,  giving  the  gold  equivalent  of  the  Native  Cur- 
rency paid. 


64 


CHAPTER  VIII 

REPORTS 

The  General  Treasurer  in  New  York  is  expected  to 
furnish  complete  reports  to  the  Board  and  to  the  Church 
of  the  expenditure  of  all  money  appropriated  by  the  Board. 
He  can  only  do  this  by  getting  from  Field  Treasurers  the 

necessary  data. 

Missionaries  must  make  out  their  reports  for  Station 
Treasurers,  and  Station  Treasurers  for  Mission  Treasurers, 
who  in  turn  must  report  to  New  York  promptly  and  fully 
on  all  receipts  and  disbursements  after  the  close  of  the 
period  (quarterly  or  annual) . 

The  object  of  all  Reports  on  the  expenditure  of  Mis- 
sion funds  is  to  furnish  an  answer  to  the  question: 

How  much  money  has  been  expended  on  each  Class 
for  which  the  Board  has  made  appropriations? 

Accounts  Closed  Each  Year. 

Mission  Accounting  is  simplified  by  the  practice  of 
liquidating  all  Accounts  each  year  (except  Class  VIII). 
The  appropriations  and  expenditures  for  one  year  stand  by 
themselves  and  the  new  year  will  start  with  new 
appropriations. 

Balances  on  the  credit  side  of  Appropriation  Accounts, 
except  Class  VIII,  revert  to  the  Board  at  the  end  of  the 
year.  Any  overdrafts  on  Appropriations  must  be  reported 
to  the  Board,  and  these  should  be  made  the  first  charge 
against  the  Appropriations  for  the  year. 

Quarterly  Reports — Mission  Treasurer. 

The  Mission  Treasurer  is  required  to  furnish  Quarterly 

66 


Reports  to  the  New  York  Office  on  blanks  furnished  for 
the  purpose.  The  directions  on  these  Blanks  are  so  clear 
as  to  require  few  additional  explanations.  Note  that  the 
full  Monthly  Statement  Charges  are  entered  on  the  Dr. 
side  (that  is,  they  are  "accepted"  as  debits  by  the  Field 
Treasurer — see  page  14  foregoing).  If  a  missionary  shall 
have  left  the  field  on  furlough  before  a  charge  against  him 
arrives,  the  Field  Treasurer  should  accept  it  as  a  debit 
nevertheless ;  he  should  then  credit  the  item  in  his  Account 
and  return  it  to  New  York  on  the  Cr.  side  of  the  Quarterly 
Report  in  the  place  provided  for  it.  The  General  Treas- 
urer's Account  should  be  debited  with  the  item.  "Accom- 
panying Statements"  should  be  filled  out  with  full  explan- 
ations and  details  which  it  is  not  possible  to  put  into  the 
Report  Blank  proper.  These  separate  or  "accompanying" 
statement  blanks  should  be  used  in  all  cases  where  there 
appears  the  line  "as  per  Statement  No ".  Such  state- 
ments should  all  be  numbered  and  thus  referred  to. 

The  Direction  on  the  Blank: 

"Remittances  to  Stations  by  Mission  Treasurer"~calls 
for  a  total  only  in  the  Quarterly  Report.  Details  must  be 
submitted  in  the  Annual  Report. 

Under  Classes  II  and  III: 

Payments  of  outfit  money  must  be  reported  separately 
for  each  individual  involved  (Class  III  only). 
Pajnnents  of  freight  and  travel  items  under  appropria- 
tions   must    be    reported    separately    for    each  individual 
involved. 

Class  VIII: 

In  the  Quarterly  Report,  complete  and  detailed  state- 
ments of  disbursements  are  not  expected  to  be  made.  How- 
ever, an  "Accompanying  Statement"  should  be  filled  out 
with  the  name  and  number  of  the  building,  or  property,  for 

66 


(.^ 


^ 

r 


which  any  disbursement  has  been  made,  with  the  amount 
disbursed. 

Gold  and  Native  Currency, 

Wherever  indicated  on  the  Report  Blanks,  Field  Treas- 
urer will  give  items  in  gold  as  well  as  the  equivalent  in 
Native  Currency. 

Exceptions  :  The  gold  equivalents  for  Class  VIII  dis- 
bursements need  not  be  given  for  those  building  or  prop- 
erty items  for  which  Native  Currency  has  been  appropri- 
ated by  the  Board. 

Interim  Notices. 

Some  entries  which  the  Field  Treasurer  must  make 
should  be  reported  at  once  to  the  New  York  Oflftce,  and  a 
special  Blank  is  provided  on  which  the  Field  Treasurer  may 
indicate  the  debit  or  credit  as  the  case  may  be.  These 
items  will  for  the  most  part  have  to  do  with  charges  and 
credits  of  individual  missionaries,  but  any  items  may  be  so 
reported  without  being  held  over  for  the  Quarterly  Report. 
These  notices  are  not  intended  for  routine  business  and  are 
not  to  be  confused  with  clearance  sheets  which  should  be 
furnished  to  all  missionaries  leaving  the  field. 

Quarterly  Reports — Station  Treasurer, 

The  Station  Treasurer  must  report  quarterly  to  the 
Mission  Treasurer.  Blanks  are  provided  which  are  self- 
explanatory.  By  changing  the  descriptive  words  printed 
on  the  Blanks  the  Station  Treasurer  can  use  these  same 
blanks  for  his  Annuxil  Report  to  the  Mission  Treasurer. 

Mission  Treasurers  Annual  Report, 

As  indicated  on  the  Blank  for  the  Annuxd  Report,  the 
amounts  to  be  given  are  the  totals  of  the  four  Quurterly 
Reports  previously  submitted.  The  preparation  of  the  last 
of  these  Quarterly  Reports  gives  the  Field  Treasurer  an 

67 


I 


Ertrofth!  "°"""''  ^7  '''"''  '"  *^^  th'-^^  farmer 

any  differL.     ^'^';-  '°  t^^^  ^^''^  ''  ""  ««°d  reason  for 
any  differences  existing  between  the  totals  in  the  Annual 

Sr  rt'f  'T'  "'  *'^  ^°"^  Quarterly'Lportt  eom- 

thSore   be  r/d.    f.f '^  ""'^  ^"""^'  ^^P°^t«  should, 
mereiore,  be  made  at  the  same  time. 

The  Mission  Treasurer  should  begin  the  preDaration 

m  order  that  he  may  complete  the  work  as  soon  there 
after  as  possible  and  may  forward  Report  to  Ne"  York 
To  this  end  he  shall  remind  Station  Treasurers  iLepare 
the  data  which  they  must  send  in  to  him  as  early  as  pos- 
sible (It  may  even  be  possible  for  Station  Treasurers  to 

Tn^TaS/t  ^'^  ^^^^^  ''  ''^  yearroTstl! 

of  an  !Xp  M^  ^^^^^'  '^"^  ''^^^^  ^^^  Annual  Report 
pfetSess  rthfp'''"V  '"f  T^  inconvenience  and  incor^ 
Assemb  J^^    ^  '  ^'^'"'^  "^  '^^  ^^^^^  '"^^^  to  the  General 

Annml  Report  Blanks. 

explidt'aS?  ifl  if '''^^'^'  "^  *^^^^  ^^^"k«  ^re  clear  and 
T?erP  It  f  ""T^  "^"""^""^  ^^"  be  self-explanatory 

^rt^ur^e"  if a^dt^r?  '^^ ^  "^^^^  ^^'  ^^^ 

Reports.    They  may  bell^Taf  ^^^^^^^^^       ^^^^^"^^^'« 
'''  stS.  ^^'    ™^^^'^   ^"~   Blanks-By 

^'^  -Sk^'""'"*  '^  Disbursements  under  Class  VIII 
(d)  Mission  Treasurer's  Statement  of  Cash-Blank. 

68 


/' 


Additional  Suggestions : 

(a)  In  Blank  (a),  noted  above,  place  disbursements 
of  salary  for  all  missionaries  (both  Class  I  and 
Class  III).  The  new  missionaries  (Class  III)  will 
be  handled  on  the  field  exactly  like  Class  I,  except 
that  the  amounts  disbursed  will  be  charged  back 
against  General  Treasurer  in  his  Account,  and  he 
will  charge  the  items  against  Class  III  Appropria- 
tion, which  will  have  been  reserved  in  New  York. 
The  appointment  of  a  new  missionary  and  his 
arrival  on  the  field  carries  with  it  the  authority  to 
the  Field  Treasurer  to  pay  him  regular  salary 
from  the  date  of  his  arrival. 

(b)  In  Blank  (b),  noted  above,  the  "Appropriation'* 
Column  (Classes  IV-X),  must  contain  the  amounts 
of  original  appropriation  in  Native  Currency  as 
finally  assigned  to  a  Station,  after  all  additions, 
subtractions  and  transfers  have  been  made. 
Spaces  are  indicated  for  appropriations  added 
during  the  year. 

The  Disbursement  columns  must  nx)t  include 
the  payments  made  out  of  Field  Receipts  since 
these  have  not  been  appropriated. 

Caution  :  Care  should  be  exercised  to  make 
sure  that  the  totals  given  in  Blanks  (a)  and  (b) 
agree  exactly  with  grand  totals  as  given  on  the 
Annual  Report  Blank.  These  detailed  Station 
Statements  must,  taken  all  together,  exactly  equal 
the  totals  as  given  on  the  Annual  Report  Blank. 
Any  differences  here  will  cause  long  correspond- 
ence and  great  delay  and  inconvenience. 

(c)  In  Blank  (c),  noted  above,  each  building  (or 
property)  undertaking  must  have  a  separate 
Blank  filled  out  for  it,  according  to  the  directions 
printed  on  the  Blank.    Here  again  the  totals  of  all 

69 


mff''r'i''-'ef'''jaaimm 


i       '< 


these  blanks  must  agree  exactly  with  the  total 
given  in  the  Annual  Report  Blank  of  the  Mission 
Treasurer  as  expended  on  Class  VIII  items.    Gold 
amounts  as  well  as  Native  Currency  equivalents 
must  be  given  for  all  Class  VIII  disbursements 
under   appropriations  if  the   appropriation   was 
made  prior  to  April  1,  1914.    When  a  Class  VIII 
appropriation  has  been  made  by  the  Board  in 
Native  Currency,  the  gold  equivalent  of  the  dis- 
bursement does  not  need  to  be  reported,  but  an 
average  rate  of  exchange  used  during  the  year 
should  be  noted  on  the  blank  for  the  purposes  of 
record. 

All   unexpended   balances   of   appropriations 
for  Class  VIII  items,  as  claimed  by  the  Mission 
Treasurer  at  the  close  of  a  fiscal  year,  must  be 
Itemized  on  a  separate  Blank  by  the  Mission  Treas- 
urer and  submitted  with  his  Annual  Report.   This 
IS  very  important,  and  if  it  is  overlooked  it  will 
cause  trouble  to  the  Mission  Treasurer  himself,  as 
v^rell  as  to  the  New  York  Office, 
(d)   Blank  (d),  noted  above,  is  intended  for  cash  assets 
and  credits  only.  Bills  of  Exchange  on  hand  should 
not  be  included  here.    They  should  be  entered  in 

the  space  provided  on  the  Annual  Report  Blank 
only. 

Missionaries'  Children  Blanks. 

These  should  be  filled  out  and  forwarded  to  New  York 
during  the  year,  as  occasion  arises.  If  this  is  done,  proper 
provisions  for  the  expenditure  can  be  made  within  that 
fiscal  year.  The  Field  Treasurer  is  authorized  to  begin 
paying  child  s  allowance  to  parents  from  the  date  of 
birth  of  a  child,  though  not  covered  by  appropriation.  The 
payments  are  to  be  charged  in  the  General  Treasurer  Ac^ 

children  s  allowances,  on  the  regular  disbursement  Blanks. 

70 


^'  m  •. 


CHAPTER  IX 

MISCELLANEOUS 


Audit. 


Field  Treasurers  should  insist  on  a  thorough  audit  of 
their  Accounts,  annually,  if  not  oftener.  Discretion  as  to 
how  the  audit  shall  be  conducted  is  left  to  the  Mission. 

Property  Ledger. 

Field  Treasurers  should  keep  in  good  form  suitable 
records  of  each  property  on  the  field,  showing  date  of 
acquisition,  amount  spent  upon. each,  value  and  dimensions 
of  lots  or  compounds  with  any  other  details  which  it  would 
be  desirable  to  have  on  record. 

Title  Deeds. 

Title  Deeds  properly  executed  and  registered  should 
be  obtained  for  every  piece  of  property  owned  by  the  Board. 
These  deeds  are  kept  on  the  field,  in  the  custody  of  the 
Mission  Treasurer.  They  need  not  be  duplicated  for  send- 
ing to  New  York. 

Insurance  on  Buildings. 

Mission  and  Station  Treasurers  should  periodically 
take  up  with  the  Property  Committee  of  the  Mission  the 
question  of  insuring  the  buildings  belonging  to  the  Board  in 
the  Mission.  Time,  or  circumstances,  may  alter  the  con- 
ditions surrounding  the  question  of  insuring  Mission  build- 
mgs  and  the  subject  should  be  examined  from  time  to  time 
and  reports  and  recommendations  submitted  to  the  Board. 

71 


/!  li 


■"wni^tai 


Ljfc-'S'a»..;-:lAJ. 


'-'■WBffim 


V 


Different  Bookkeeping  Methods, 

Other  methods  than  those  outlined  in  the  early  part 
of  this  booklet  could  be  successfully  employed  in  Mission 
Accounting,  but  it  is  believed  that  those  here  outlined  will 
prove  the  simplest  of  any  that  could  be  devised. 

Local  conditions  might  necessitate  the  modification  or 
change  in  some  of  the  Accounts,  or  their  arrangement,  but 
the  Rules  and  principles  will  apply  to  any  system.  For 
instance,  it  might  be  advisable  to  open  an  Account  called 
"General  Treasurer  Appropriation  Account",  in  which 
should  be  charged  all  appropriations  received  both  regular 
and  special  and  at  the  close  of  the  year  all  unspent  balances 
of  appropriations  (except  Class  VIII),  should  be  credited 
to  this  Account.  When  the  books  are  closed  for  the  year 
the  balance  in  this  Account  (except  Class  VIII),  should  be 
transferred  to  the  General  Treasurer  Account. 

Value  of  Proper  Accounting, 

Not  only  is  proper  accounting  absolutely  necessary  for 
the  honorable  discharge  of  the  trust  committed  to  the  Board 
and  its  Missionaries,  but  it  will  surely  redound  to  stronger 
and  more  effective  work  in  evangelism,  education  and 
medicine  as  conducted  on  the  field.  Properly  kept  accounts 
are  a  defense  against  criticism  and  tend  to  save  individuals 
from  personal  indebtedness,  a  burden  which  impairs  per- 
sonal  efficiency  and  which  may  cloud  a  bright  Christian 
experience. 

General. 

The  Field  Treasurer  acts  as  the  agent  of  the  Mission 
in  the  departments  of  finance  within  his  Mission,  and  with 
reference  to  Board  actions  and  Manual  Rules  affecting  his 
department,  he  is  the  representative  also  of  the  Board. 

He  is  expected  to  co-operate  with  the  Executive  Com- 
mittee of  the  Mission   (or  the  Treasurer's  Committee  if 


there  be  one)  and  they  with  him,  and  sound  sense  and 
judgment,  coupled  with  good-will,  will  serve  to  make  his 
position  one  of  great  usefulness. 

The  Field  Treasurer  will  go  as  far  as  the  limits  of  the 
Board  actions  and  Manual  Rules  will  permit  in  meeting 
unusual  or  unforeseen  situations,  and  in  case  of  doubt, 
communication  may  be  had  with  the  Executive  Committee 
of  the  Mission,  or  with  the  Board  in  New  York. 


72 


73 


II 

i 


ABBREVIATIONS 


A/C 

Approps. 

B/E 

Bldg. 

C.  of  C. 

Cert,  of  Cred. 

Cr. 

Dr. 

Feb. 

Gen. 

Gov. 

J'nal 

Memo. 

N.  Y.  M.  O. 

No. 

P- 
Res. 

Treas. 


At 

Account 

Appropriations 

Bill  of  Exchange 

Building 

Certificate  of  Credit 

Certificate  of  Credit 

Creditor 

Debtor 

February 

General 

Government 

Journal 

Memorandum 

New  York  Money  Order 

Number 

Page 

Residence 

Treasurer 


74 


INDEX 

^  PAGE 

„   ,        .                                                                           40 

Accounts,  Balancmg  ^ 

Accounts,  Creditor   ^ 

Accounts,  Debtor  • .^  .„ 

Accounts,  General,  What  Balances  Reveal 40,  4D,  ^^ 

Accounts,  Personal    ^g 

Accounting,  Value  of  ^ 

Accounting,  What  It  Is ^^  ^^ 

Annual  Reports   68*  73 

Annual  Report  Blanks  •  •  •  • * 

Appropriation  Account,  Balances  at  Close  of  Year ^ 

Appropriation  Account,  What  Balance  Reveals lo  11  51 

Appropriation,  Classes  of '  i  n%l 

Appropriation,  What  the  Term  Means A"»  ^i 

Audit gg 

Authority  for  Making  Disbursements 

»                                     ...  '      48 

Balance  Sheet 47  48 

Balance,  Trial    \q 

Balancing  Accounts   • ^g 

Bank  Accounts,  What  Balance  Reveals ^^ 

Bills  of  Exchange •  •  • *•*•*•, 46 

Bills  of  Exchange  Account,  What  Balance  Reveals ^ 

Bills  of  Exchange,  Credit  and  Debit  of ^^^^ 

Blanks  for  Reports ^g 

Bookkeeping,  Different  Methods ^  ^ 

Bookkeeping,  Double  Entry '  ^ 

Bookkeeping,  What  It  Is ^^ 

Building  Drafts   gg 

Building  Prafts  Account ^^ 

Building,  Insurance  on 

^  45 

Cash  Account,  What  Balance  Reveals •  •  •  19, 41, 42 

Cash  Book *      '43 

Cash  Book,  Balancing ^g 

Cash  Book,  Example  of ^^^^^ 

Cash  Book,  How  to  Post 15  16,  59 

Certificates  of  Credit  '     '  ^rj 

Certificate  of  Credit  Account ^^  g^ 

Children's  Allowances,  What  Class » 

75 


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Children»s  Blanks   '^^ 

Class  VIII  Accounts 5^'  ^^ 

Class  VIII  Disbursements,  How  to  Report 66,  67 

Classes  of  Appropriations  10, 11,  51 

Clearance  Sheets   "^ 

Creditor,  Meaning  of  Term ^ 

Currency,  Native  .• 49,50 

D 

Debtor,  Meaning  of  Term ^ 

Deeds  of  Property '^ 

Directions,  General   ^^'^^ 

Disbursements,   Authority  for   Making 58 

Dispensary  Work,  What  Class ^^ 

Double  Entry   ^ 

Drafts,  Building  J^,  59 

Drafts,  Emergency   lS,b9 

E 

Educational  Work,  What  Class ^^ 

Emergency   Drafts    ^^^  ^^ 

Emergency  Drafts  Account ^^ 

Emergency   Furloughs    ^^ 

Evangelistic  Work,  What  Class 1" 

Exchange  Account,  Explained   ^^ 

Exchange,  Rates  of ^^ 

Executive  Committee    •  •  72,  73 

P 

Field  Money  Order  Account ^'^ 

Field  Money  Orders   ^^^  ^^ 

Field  Receipts ^^ 

Field  Treasurer's  Authority 58,  72,  73 

Field  Treasurers'  Statements  ^^ 

Freight  Charges ^^ 

Fundamental  Principles  ^"^ 

Funds  for  Emergencies   °° 

Funds,  Getting  to  Field ^0 

Furloughs,  Emergency  ^^ 

Furloughs,  What  Class   ^^*^^ 

G 

General    Directions ^^-64 

General  Treasurer's   Statement 14,15 

76 


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Hospital  Work,  What  Class 

Indebtedness  of  Missionaries ^^ 

Insurance  on  Buildings   g^ 

Interest  Account    '  ^.y 

Interim  Notices   

J 

19, 20 

Journal 23 

Journal,  Example  Entries 

^                           19, 24 

Ledger 25-39 

Ledger,  Examples  of    25 

Ledger,  How  to  Open ^^ 

Ledger,  Property   

10 

Medical   Work,   What   Class ••  9  20,  21 

Memorandum  Book  '     '  gi 

Memorandum  Book,  Examples  of ^^ 

Methods  of  Bookkeeping   ^^ 

Mission  Expenses,  What  Class ^^ 

Mission  Field  Receipts  ^^ 

Mission  Presses,  What  Class ^^_^^ 

Mission  Treasurers'  Reports   ^^ 

Missionaries'  Children  Blanks ^^ 

Missionaries'  Children,  What  Class ^^|  ^^ 

Missionaries'  Freight  Charges   '  ^^ 

Missionaries'  Indebtedness    IQ  51 

Missionaries,  New,  What  Class •  ' 

Missionaries'  Outfit,  What  Class 17'  57 

Missionaries'  Personal  Accounts    •••••••;•••••*. '  * ' '  ;^:  *  1 

Missionaries'  Salaries  and  Expenses,  Not  on  Field,  What  ^^^  ^^ 

Class *  • in  ri 

Missionaries'  Salaries  on  Field,  What  Class 61  62  66 

Missionaries'    Travel    V" '', 'lo'^Sl 

Missionaries'  Travel  and  Freight,  What  Class •  •  ^^  ^^^  1^.  ^^ 

Money  Orders    '      '  14'  15 

Monthly  Statements   

N  ... 

49,  50,  51 

Native  Currency    17  61 

New  York  Money  Orders   '  g^ 

Notices,  Interim  

77 


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Orders  for  Goods    ^ 

Orders  for  Payments   ^ 

Outfit  Disbursements    ^ 

Outfit  Disbursements,  How  to  Report ^^ 

Outfit  of  Missionaries,  What  Class 10,  51 

P 

Pajmfients  in  U.  S 17  c7 

Personal  Accounts ^  ll'  „I 

Posting 19'20-25 

Property   Deeds    ««  I7 

Property  Disbursements,  How  to  Report 66,67 

Property  Ledger JJ 

Property,  What  Class " 

Purchase  Orders   ^ 

Q 

Quarterly  Reports,  Mission  Treasurer 65-73 

Quarterly   Reports,   Station   Treasurer ^" 

R 

Rate  of  Exchange   ^ 

Receipts  on  Field    ^ 

Rents,  What  Class    ^^ 

Repairs,  What  Class *" 

T,.                                                                                         65-7o 

Reports 

Report  Blanks ^^-^"t 

Rule  No.  1    ^ 

Rule  No.  2    ^ 

Rule  No.  3    ^ 

Rule  No.  4   •^" 

8 

Salaries  Placed  in  Personal  Accounts 26, 27, 28 

Salaries  of  Missionaries,  What  Class 1^ 

Station  Expenses,  What  Class J* 

Statements  from  Field  1  a  1^ 

Statements  from  N.  Y a^ 

Station  Treasurers'  Reports  

T 

Title  Deeds  ^J. 

Transactions  Explained   «i   aa 

Travel  from  Field • ^^'^^ 

Travel  of  Missionaries  e     «« 

Travel  to  Field   ^2,66 

Trial  Balance   

78 


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END  OF 
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